Department of Commerce: Newsroom Itemhttps://www.commerce.gov/feeds/news/opinion-editorials/2009
The most recent 20 items in this list.enU.S. Deputy Secretary of Commerce Bruce Andrews Delivers Keynote Remarks at America Georgia Business Council Annual Conference https://www.commerce.gov/news/deputy-secretary-speeches/2016/12/us-deputy-secretary-commerce-bruce-andrews-delivers-keynote-0
<p>Today, U.S. Deputy Secretary of Commerce Bruce Andrews delivered keynote remarks at the America Georgia Business Council (AGBC) annual conference. Founded in 1998, the AGBC promotes trade between North America and Georgia by helping companies focus and accelerate decision-making to forge bilateral business partnerships.</p>
<p>During his remarks, Deputy Secretary Andrews discussed his recent visit to Tbilisi and reflected on the successful diplomatic and commercial ties forged between the United States and Georgia in the 25 years since its independence. The Deputy Secretary emphasized Georgia’s progress in opening and reforming its economy, noting the important contributions of public-private partnerships such as the AGBC. Deputy Secretary Andrews highlighted ongoing efforts at the Commerce Department to work with Georgia to build a more welcoming climate for business and investment as Georgia emerges as a key player in global commerce.</p>
<p><strong><em>Remarks as Prepared for Delivery</em></strong></p>
<p>Thank you, Mamuka, for that kind introduction. I am in the unenviable position of standing between people and Georgian wine. It is wonderful to be with all of you this evening to celebrate 25 years of Georgian independence and to highlight the Department of Commerce’s efforts to strengthen the U.S.-Georgia commercial relationship. </p>
<p>For the last 18 years, our efforts were bolstered by our close collaboration with the America Georgia Business Council. Since 1998, AGBC’s voice has been instrumental to Georgia’s progress in opening and reforming its economy. Your work has created a precedent of close dialogue between government and business. </p>
<p>Put simply, the work done by the America Georgia Business Council not only benefits your membership - it benefits all of Georgia. Your members employ hundreds of Georgian workers, pay Georgian taxes, and contribute to Georgian society. </p>
<p>At the Department of Commerce, we believe that each of you is critical to the innovation, entrepreneurship, and employer-driven workforce that Georgia needs to succeed. And, as we pursue greater economic cooperation through our U.S. - Georgia Economic Working Group and our High Level Trade Dialogue, we look forward to continued support from the AGBC and its members.</p>
<p>Over the last few years, I have had the privilege to meet with key policy-makers and business leaders from all around the world. As my time as Deputy Secretary of Commerce comes to a close, one of my key takeaways is that capital is more mobile than ever in the 21st Century. Countries must compete for foreign investment – not just against their neighbors, but against the entire world. Companies can – and do – invest anywhere. </p>
<p>To win in this environment, it is not enough to make your market slightly more attractive. Rather, countries must do everything possible to be as attractive as possible. And Georgia is no different. Each of us knows that a strong commercial relationship between the United States and Georgia benefits both nations. Since 1991 – and especially over these last few years – Georgia has made significant strides to eliminate corruption and instill investor confidence through greater transparency. </p>
<p>Georgia’s rise in the World Bank’s Ease of Doing Business rankings demonstrates that with effective policy-making, improvements are possible. It is an impressive feat to be among the best markets year after year. You deserve a great deal credit for the work that you have done. </p>
<p>We know that addressing commercial issues, protecting intellectual property, and removing unnecessary regulatory barriers leads to new investments and greater economic growth. That is why we have worked so closely with Georgia’s leaders to implement reforms. And it is working. Georgia’s economy is growing and it is becoming a better and better place to do business. </p>
<p>More than two thousand years ago, the original Silk Road served as the first true link between eastern and western markets. This corridor connected South and Central Asia with Europe and the Middle East, moving not only goods but also religious and cultural traditions that continue to influence our world. The result was an explosion in commerce and the creation of newfound wealth for cultures and communities from China to Europe. </p>
<p>Today, Georgia has an opportunity to once again embrace commerce through regional integration. I saw this firsthand at the inaugural Tbilisi Silk Road Forum in October 2015. It was clear that Georgia has an emerging role in global commerce. </p>
<p>Of course, today is not only about embracing the past. It is an opportunity to focus on what is possible in the years ahead. Your success is important to the United States. A prosperous, successful Georgia is in all of our best interests. And we think that American companies can – and should – be part of your success. </p>
<p>That is why the Department of Commerce looks forward to participating in the second Silk Road Forum in April. The Forum is a great opportunity to discuss the actionable steps needed to turn the modern Silk Road into a thriving economic powerhouse – and to link American companies to new opportunities in the region. We stand ready to help you develop and implement reforms, including the elimination of barriers that slow investment and hold back growth.</p>
<p>The Commercial Law Development Program, for example, is currently providing legal expertise to help Georgia craft its legal framework in a way that ensures a level playing field for all. The Special American Business Internship Training Program, or SABIT, is providing direct technical assistance to Georgian businesses by sponsoring study tours to the United States where they meet with U.S. counterparts and learn American best practices. And we are working closely with Georgian officials. In fact, Deputy Assistant Secretary Michael Lally, just returned from a trip to Georgia, where he met with members of the newly-elected government to discuss our ongoing efforts.</p>
<p>Of course, as close friends and partners, our two governments have an obligation to speak candidly. And that means being honest about the challenges that we continue to face. If Georgia is to fully realize its potential – and its vision of shared prosperity – it must continue to enact reforms that enable its economy to more fully integrate into the global marketplace, attract investment, and promote greater innovation. The time is now for Georgia to embrace a forward-looking, economic growth agenda. </p>
<p>This means working closely with the business community. Let’s face it: government does not have the answers to every problem. Government can’t build all the infrastructure that is needed. It can’t invent the next great technology or deploy the newest app. As this group knows well, the private sector must be part of making the New Silk Road a reality. </p>
<p>Fortunately, U.S. companies are ready and able to assist in Georgia’s efforts. Take the Conti Group and their work as a part of the Anaklia Development Consortium. In October, they signed a contract with the Ministry of Economy and Sustainable Development, to provide construction, banking, equipment, program management, and operation services for a new Anaklia Deep Sea Port in the Black Sea. The value of the first phase of the project is estimated at $695 million with a potential for $225.2 million in U.S. export content.</p>
<p>Finally, I would be remiss if I didn’t mention our tremendous team. Matt Edwards, Danica Starks, and Joshua Bartlett are some of our best people – and they are committed to seeing this relationship flourish even further. Because of the quality of our team and the willingness of groups like AGBC to engage in the policy making process, I am confident that the next 25 years of Georgian independence will be even better than the last quarter century. </p>
<p>So let’s continue the collaboration that we have developed since 1991. If we do, the next 25 years will bring greater promise and prosperity for both our countries. Thank you.</p>
Wed, 07 Dec 2016 19:03:27 -0500kcpullen@doc.govhttps://www.commerce.gov/news/deputy-secretary-speeches/2016/12/us-deputy-secretary-commerce-bruce-andrews-delivers-keynote-0U.S. Deputy Secretary of Commerce Bruce Andrews Delivers Keynote Remarks on Tech Workforce Development at Urban Alliance Eventhttps://www.commerce.gov/news/deputy-secretary-speeches/2016/12/us-deputy-secretary-commerce-bruce-andrews-delivers-keynote
<p>Today, U.S. Deputy Secretary of Commerce Bruce Andrews delivered keynote remarks at an event hosted by the Urban Alliance on “Young People, Tech and the Future of Work.” The event brought together leaders in government, business, and academia to collaborate on creating opportunities for young people and the business community to train, prepare, and leverage the skills of the next-generation of workers and innovators.<br />
<br />
During his remarks, Deputy Secretary Andrews highlighted the Department of Commerce’s partnerships with industry to help close the nation’s talent gap through the Skills for Business agenda. The Commerce Department and the Obama Administration are working closely with private sector partners to increase the capacity of our workforce to innovate and compete globally through the creation of talent pipelines in fields like IT and cybersecurity, which are critical to the future of our digital economy. As an example of this collaborative model, President Obama <a href="http://links.govdelivery.com:80/track?type=click&amp;enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTYxMjA3LjY3Mjk5ODMxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE2MTIwNy42NzI5OTgzMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2ODc2OTA5JmVtYWlsaWQ9a2NwdWxsZW5AZG9jLmdvdiZ1c2VyaWQ9a2NwdWxsZW5AZG9jLmdvdiZ0YXJnZXRpZD0mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&amp;&amp;&amp;100&amp;&amp;&amp;https://www.whitehouse.gov/issues/technology/techhire">launched TechHire</a> in March 2015, a public-private program to fill more than 600,000 open technology jobs. In closing, the Deputy Secretary underscored the critical importance of preparing the nation’s young people to succeed in the high-tech jobs of the 21st century.</p>
<p><strong><em>Remarks as Prepared for Delivery</em></strong></p>
<p>Good morning, and thank you for that warm introduction, Sarah. I am delighted to be here today. Let me start by thanking Airbnb and the Urban Alliance for teaming up to host this event. Today’s conversation couldn’t be more important to our country’s future.</p>
<p>It’s a conversation about how digital technology is transforming the way we live, learn, work, and do business. About our nation’s future in a global economy that is increasingly interconnected. And it’s about harnessing the potential of America’s most precious resource: the talent of our people, and especially our young people. </p>
<p>From the invention of the lightbulb to the deployment of lightning-fast broadband, innovation has always fueled our economy. The entrepreneurial spirit and industriousness of our people helped build the most prosperous and innovative economy ever known. Yet we cannot take our success for granted. Not in the 21st century.</p>
<p>Consider that just two decades ago, fewer than 500 million people worldwide had access to the Internet. Today, over 3.2 billion people are connected, and we’re on track to reach five billion by 2020. As more people access the Internet’s vast storehouse of knowledge, anyone with a network connection can be an entrepreneur. And game-changing innovations can come from any corner of our country and the world.</p>
<p>Today, a technology startup in Austin may hire programmers in Singapore to support a manufacturing client in Germany using cloud servers in North Carolina.</p>
<p>In today’s global economy, the competition has never been steeper. The pace of innovation has never been faster. And preparing Americans for the jobs of the future is more important than ever. We all know how far we’ve come since 2009, when President Obama took office and we were losing more than 700,000 jobs a month.</p>
<p>Since 2010, the private sector has added 15.6 million new jobs and the unemployment rate has dropped to 4.6 percent. That’s the lowest we’ve seen since August 2007. Our steady economic recovery has created jobs for millions of people. But we have also seen anxiety over the changing nature of work become a major issue of debate in our society. This anxiety stems from a simple fact: while our economy continues to grow, many Americans have yet to feel the gains. And forces like digitization, automation, and globalization are transforming our world in profound ways.</p>
<p>Many jobs being created in 2016 are different from those we lost in 2008. Companies are increasingly looking to hire data scientists, web developers, engineers, cybersecurity analysts, and other highly-skilled workers. As the private sector drives astounding innovations in new areas like autonomous vehicles, artificial intelligence, and advanced manufacturing, we must ensure that more Americans share in our economic gains. That starts with equipping the workers of today and of tomorrow with the skills needed for the jobs of the future.</p>
<p>As Deputy Secretary of Commerce, I have met with countless business leaders concerned about our nation’s shortage of highly-skilled workers. For the United States to remain the global leader in innovation and to continue out-competing the rest of the world, we must build a workforce prepared to succeed in the 21<sup>st</sup> century. </p>
<p>To address this challenge, Secretary Pritzker and I have made workforce development a top priority for the first time in the Department of Commerce’s history. Our “Skills for Business” initiative focuses on equipping workers with the skills needed by today’s employers. We have formed a partnership between the Departments of Commerce and Labor to ensure our workforce policies are truly jobs-driven. We have invested in regional pipelines of talent in fields like cybersecurity and IT. And we are working with local governments, economic development organizations, colleges and companies to ensure community workforce development programs reflect the needs of the region’s employers.</p>
<p>Take for example the Department of Commerce’s National Initiative for Cybersecurity Education, or NICE. Led by our National Institute for Standards and Technology, NICE is engaging academic experts and private sector leaders to develop best practices for cybersecurity education. This fall, we issued the first-ever federal grant funding for community-based cybersecurity training. For example, Cin-Day Cyber is a local partnership between universities in the Cincinatti-Dayton region, where the Department of Defense’s cyber operations have spurred a growing cybersecurity industry. But with an estimated 300,000 cybersecurity-related job openings nationwide, we must rapidly recruit more Americans into these positions.</p>
<p>The success of our digital economy depends on strong cybersecurity, and strong cybersecurity depends on the capacity of our workforce to defend our country against today’s ever-evolving threats. Last week, the report delivered to President Obama by the Commission on Enhancing National Cybersecurity recommended we launch a national talent surge to dramatically improve workforce preparedness. And we expect our Digital Economy Board of Advisors, which will issue recommendations next week on broader issues of importance to our digital economy, to include skills and education as a priority as well.</p>
<p>Such efforts complement President Obama’s TechHire initiative - one of our Administration’s most successful public-private sector partnerships to date. Through industry-led boot camps and accelerated training, TechHire aims to prepare Americans for the more than 500,000 jobs available in IT nationwide. The President’s initiative has invested $150 million in federal grants in public-private partnerships – with a special focus on preparing disadvantaged communities for jobs in the IT field – from veterans to people with disabilities to immigrants to people with criminal records.</p>
<p>Consider the story of Chelsea Okey, a U.S. Army veteran. Following her graduation from the University of Minnesota, she attended TechHire’s PRIME Digital Academy in Minneapolis. After completing the 18-week computer programming course, she joined a local company called SmartThings as a software engineer – despite initially having no technical background.</p>
<p>To build more pipelines of talent nationwide, last year our Department’s Economic Development Administration joined forces with the Aspen Institute to launch the Communities That Work Partnership. This initiative has funded seven regional efforts nationwide aimed at identifying and closing their own unique talent gaps. Our partnership in Arizona, for example, has focused on the need for IT personnel in an array of sectors, such as health care and human resources.</p>
<p>The reality is that in today’s digital economy, every company is increasingly a digital company. The Arizona partnership consulted more than 200 business leaders on the specific skills they needed universities and schools to still in students and trainees. When our educational programs better match the needs of employers, we can help steer more Americans into high-tech, high-paying jobs.</p>
<p>There is perhaps no greater example of how digitization is transforming industry than in manufacturing. Today’s firms are incorporating new digital tools like 3D printing, data analytics, and robotics into their production. Yet manufacturers currently have over 300,000 unfilled openings nationwide. Too many young people still associate manufacturing with the assembly line jobs of the 19<sup>th</sup> century instead of the high-tech jobs of today. That is a problem, because by 2024 our economy will need to fill over two million jobs in fields like engineering and production.</p>
<p>To inspire more Americans about these innovative career opportunities, we started Manufacturing Day. Held on the first Friday of October, businesses, factories, and research labs open their doors to showcase what manufacturing looks like in the 21<sup>st</sup> century. And surveys show students leave these events more excited about manufacturing careers.</p>
<p>Our economy is undergoing a sea change of innovation. It is up to us, as leaders in government and industry, to prepare our people to succeed in the fields of the future. We cannot drive the innovations of tomorrow without investing in our people today.</p>
<p>Meeting that task is a responsibility for all of us – across the public and private sectors. And the Department of Commerce is your partner in these efforts. For our economy to grow and our families to thrive, we must prepare our people to succeed in the 21<sup>st</sup> century. And we know that Airbnb and the Urban Alliance, as well as the other panelists you’ll hear from today, share this commitment. Thank for the opportunity to be here. It is now my pleasure to welcome my friend Dean Garfield to the stage. </p>
Wed, 07 Dec 2016 10:31:11 -0500kcpullen@doc.govhttps://www.commerce.gov/news/deputy-secretary-speeches/2016/12/us-deputy-secretary-commerce-bruce-andrews-delivers-keynoteU.S. Deputy Secretary of Commerce Bruce Andrews Delivers Remarks at 4th Annual Kazakhstan-U.S. Convention https://www.commerce.gov/news/deputy-secretary-speeches/2016/12/us-deputy-secretary-commerce-bruce-andrews-delivers-remarks
<p>Today, U.S. Deputy Secretary of Commerce Bruce Andrews delivered remarks at the 4th Annual Kazakhstan-U.S. Convention, which brings public and private sector leaders from both countries together to strategize about the future of the U.S.-Kazakhstan bilateral trade and investment relationship.</p>
<p>During his remarks, Deputy Secretary Andrews discussed his recent visit to Astana and reflected on the successful diplomatic and commercial ties forged between the United States and Kazakhstan in the 25 years since its independence. The Deputy Secretary also highlighted ongoing efforts at the Commerce Department to work with Kazakhstan to build a more welcoming climate for business and investment in advance of the upcoming Astana Expo 2017. </p>
<p><strong><em>Remarks as Prepared for Delivery</em></strong></p>
<p>Thank you, Margery, for that kind introduction. It’s a pleasure to be here today. Let me start by thanking Ambassador Umarov and the Embassy of Kazakhstan for bringing us all together for the 4th Annual Kazakhstan-U.S. Convention. I feel like I’ve been here for all of them. I am honored to speak today about the Department of Commerce’s efforts to strengthen the U.S.-Kazakhstan commercial relationship. We value you as partners. Your success is important to the United States. And we want to work with you to ensure that trade between our two countries continues to grow. In fact, as we reflect on the progress of the last 25 years, it is important that we strive for an even more productive future.</p>
<p>2016 has been a seminal year for Kazakhstan. Not only are we celebrating 25 years of Kazakhstan’s independence, but we also celebrating a quarter century of U.S.-Kazakhstan diplomatic relations. The United States was the first to recognize Kazakhstan’s independence in December 1991. And from the beginning, our relationship has been rooted in commerce – in the commercial relationships between our two countries that grow deeper and more prosperous every year. Take, for example, Chevron’s commitment to TCO which dates back to 1993. It was accompanied by the entry of a dozen U.S. firms into the Kazakhstan market. At the Department of Commerce, we take pride in the business relationships that we have helped to create for our companies in Kazakhstan. We have seen how U.S. industry has supported Kazakhstan through its transition from a centrally-planned economy into a player in global commerce.</p>
<p>Today, many American firms operate in Kazakhstan. They not only bring investment and management expertise, but also new technologies and a commitment to inclusive growth. The American Chamber of Commerce in Kazakhstan, for example, now has over 200 members committed to supporting a fair and competitive business climate across the country. This is good for the people of Kazakhstan, but also a sign that after 25 years of diplomatic and commercial ties, Kazakhstan is poised for even greater success in the decades to come.</p>
<p>I have seen these opportunities firsthand. This past July, I visited Astana to meet with government officials and members of the business community. I heard about Kazakhstan’s plans to become a regional commercial hub and described how American companies can – and should – be part of this effort. Today, the Kazakhstani people have created a vibrant economy, integrating generations of cultural traditions with modern amenities, technologies, and services. I saw this everywhere I went, from the Khan Shatyr mall in Astana to the Bayterek Tower. In my meetings with the Government of Kazakhstan, I was impressed by officials’ commitment to creating a better business and investment climate.</p>
<p>We discussed the many opportunities made possible by Kazakhstan’s privatization efforts and the planned Astana International Financial Center. I was also encouraged by Kazakhstan’s extensive engagement with the international community, including its recent WTO membership, upcoming non-permanent seat on the UN Security Council, and continuing aspirations to join the OECD. Let me be clear: The United States remains committed to working with Kazakhstan to create an economic climate that enables foreign and domestic businesses to thrive.</p>
<p>As we celebrate our past progress, we remain focused on the future. Over the last few years, I have had the privilege to meet with key policy-makers and business executives around the world. As my time as Deputy Secretary of Commerce comes to a close, one of my key take aways is that capital is more mobile than ever in the 21st century. That countries must compete for foreign investment – not just against their neighbors, but against the entire world. Companies can – and do – invest anywhere. To win in this environment, it is not enough to make your market slightly more attractive. Rather, countries must do everything they can to be as attractive as possible.</p>
<p>Kazakhstan is no different. It has tremendous resources; its location at the center of the historical Silk Road; and its ability to link East and West today are advantages that few countries can match. Yet, it is hard to realize the benefits of these comparative advantages when companies still confront basic business climate challenges. That is why we continue to seek reforms that strengthen the rule of law, ensure fairness and judicial independence, and eliminate corruption and legal uncertainty. Above all, companies are looking for transparency and predictability, whether that is in licensing requirements, work permit regulations, tax treatment, intellectual property protections, or customs tariff applications.</p>
<p>Our team at the Department of Commerce stands ready to support your reform agenda and the continued modernization of Kazakhstan’s economy. For example, our Commercial Law Development Program organizes Expert Level Regional Working Groups on standards, customs issues, and sanitary and phytosanitary measures. The U.S. Patent and Trade Office has also organized a series of Judicial Workshops. But improving the business climate in Kazakhstan must be a true partnership – one that brings out the very best in our governments and private sectors. Put simply, economic reforms that promote greater investment in Kazakhstan are in all of our best interests. The Kazakhstani people benefit from the creation of new jobs, improvements to infrastructure, and the many other economic opportunities spurred by greater collaboration.</p>
<p>We share the Government of Kazakhstan’s view that supporting the development of small and medium-sized enterprises is essential to health of the overall economy. Our Special American Business Internship Training Program, or SABIT, provides Eurasian business leaders the opportunity to learn about U.S. best practices, build partnerships, and strengthen their professional networks. Since the program’s inception 25 years ago, SABIT has trained over four hundred Kazakhstani business professionals. Earlier this year, our program for Kazakhstani IT Startup Entrepreneurs brought aspiring business owners to Washington, New York City, and Silicon Valley to meet with incubators, venture capitalists, and technology leaders.</p>
<p>Looking to the future, we are thrilled that an implementing partner has been selected for the USA Pavilion at the Astana Expo 2017. And we are confident that APCO, its partners, and sponsors will create an excellent experience for visitors. The U.S. Pavilion will highlight the diversity of American culture, the strength of our educational institutions, and the contributions of U.S. businesses to Future Energy and your other efforts. The Expo represents a unique opportunity for Kazakhstan as well. It is your opportunity to show the world the progress you have made over these last 25 years – from your rich culture to a budding innovation ecosystem to your multi-vector foreign policy successes. It will also be a chance to show the direction Kazakhstan will head in these next few years.</p>
<p>I want to thank Assistant Secretary of State Nisha Biswal, Deputy Assistant Secretary Dan Rosenblum, and their team who have worked tirelessly with the Embassy of Kazakhstan, the U.S.-Kazakhstan Business Association, and Expo officials to make the United States Pavilion a reality. Our companies will be well represented because of your efforts.</p>
<p>Finally, I would be remiss if I didn’t mention our tremendous Commercial Service professionals both in Almaty and here in Washington. At the Commerce Department we have teams covering almost every market – few are as talented and as committed than our Kazakhstan Team. Pat Cassidy and his team in Almaty, along with Matt Edwards, Danica Starks, and Becca Dash here in Washington work daily with U.S. companies to enter the Kazakh market or grow their businesses in Kazakhstan. Take Spancrete, a Wisconsin-based company that manufactures precast concrete products and machinery. During my visit, I saw how Our Commercial Service office in Almaty provided on-the-ground guidance to help the firm find local partners to open two production facilities in Kazakhstan to supply materials for the government’s affordable housing program. These success stories only encourage more American business leaders to explore the opportunities for innovation and collaboration in Kazakhstan.</p>
<p>As I said at the beginning of my remarks, we should stop to consider how far we have come in our relationship over the last 25 years. We have come a long way and our businesses and government leaders – most of which came before me – deserve a lot of credit. But we should also be hopeful for the future. I have seen our business relationship build closer ties between our two countries firsthand. I have heard Kazakhstan’s senior officials describe their goals for the future. And I have worked closely with our teams on both sides of this important relationship. It is for this reason that I know tomorrow will be even better than today. So let’s commit ourselves to do what’s necessary for our bilateral relationship to reach its full potential. I look forward to tracking your progress in the years ahead and thank you for the opportunity to be here today.</p>
Tue, 06 Dec 2016 14:13:51 -0500kcpullen@doc.govhttps://www.commerce.gov/news/deputy-secretary-speeches/2016/12/us-deputy-secretary-commerce-bruce-andrews-delivers-remarksU.S. Secretary of Commerce Penny Pritzker Delivers Keynote on Cybersecurity Commission Recommendations at USTelecom Forum https://www.commerce.gov/news/secretary-speeches/2016/12/us-secretary-commerce-penny-pritzker-delivers-keynote-cybersecurity
<p>U.S. Secretary of Commerce Penny Pritzker delivered a keynote address to USTelecom’s eighth National Cybersecurity Policy Reform on a report issued this past Friday by the Commission on Enhancing National Cybersecurity. Secretary Pritzker’s remarks highlighted key elements of the Commission’s recommendations, which provide industry leaders, federal lawmakers, and the incoming Administration with a blueprint for securing our economy in the digital age.</p>
<p>President Obama charged the U.S. Department of Commerce’s National Institute of Standards and Technology (NIST) with providing staff and logistical support to the 12-member Commission, comprised of public and private sector experts appointed by the Administration and bipartisan leaders in Congress. A core component of the Obama Administration’s Cybersecurity National Action Plan, the Commission’s recommendations contain short and long-term strategies to strengthen our cybersecurity posture across industry and throughout every level of government.</p>
<p><strong><em>Remarks as Prepared for Delivery</em></strong></p>
<p>Thank you for that kind introduction, Walt. It’s a pleasure to be here. I would also like to thank Robert Mayer and the many industry leaders here today who developed last year’s recommendations to the FCC on cyber risk management. Your continued engagement is vital. Your companies sit at the forefront of our cyber threat landscape. And this forum could not be more timely. </p>
<p>Earlier this year the President established the Commission on Enhancing National Cybersecurity, comprised of 12 public and private sector experts appointed by the Administration and bipartisan leaders in Congress. The Commission was charged with developing short and long-term recommendations to strengthen our national cybersecurity posture. Last Friday, their Report on Securing and Growing the Digital Economy was delivered to the President.</p>
<p>Recent events have made clear how urgently we need a comprehensive, well-coordinated, and collaborative cybersecurity strategy. In 2016 alone, we witnessed ransom-ware infect at least a dozen hospitals nationwide, a denial-of-service attack disrupt Twitter and other sites using malicious code installed on household devices, and email hacks influence our elections in unprecedented ways.</p>
<p>These incidents indicate we have arrived a moment of reckoning. Innovation and technology adoption are outpacing our ability to ensure security – and will continue to do so if we fail to take action. The Cybersecurity Commission’s report provides our country with a blueprint of steps that must be taken – by our government, by our businesses, and by our citizens – to address this cybersecurity crisis. </p>
<p>The Commission’s recommendations are the culmination of months of consultation with stakeholders across business, academia, government, and civil society. They reflect principles that transcend partisan divides, different Administrations, new Congresses, and changing political and economic cycles.</p>
<p>And I am proud that this report embraces priorities that my team and I have championed throughout my tenure at the Department of Commerce, such as enhancing security without stifling innovation, protecting a free and open Internet, and enabling greater public-private sector cooperation.</p>
<p>We have worked to give industry a voice throughout this process, because our cyber policies impact not only our national security but also the ability of our businesses to compete and drive innovation in the 21st century global economy.</p>
<p>Today I want to discuss three of the strategic imperatives outlined by this Commission that are vital to securing our digital future.</p>
<p>First, creating new structures to enable industry collaboration with government – before, during, and after cyber-attacks.</p>
<p>Second, launching an aggressive national cybersecurity workforce initiative to meet the needs of employers across government and industry.</p>
<p>And third, baking security into the Internet of Things and other emerging technologies through greater technical collaboration and investments in basic research.</p>
<p>Recognizing that neither government nor industry alone can secure our nation’s vast digital infrastructure, the Commission recommends that we create new mechanisms for collaboration. That begins with getting companies and agencies to speak the same language of cyber risk.</p>
<p>In today’s highly-dynamic threat environment, traditional checklist compliance alone cannot defend us against ever-evolving threats. Consider the Pegasus attack that compromised iPhone users’ credit card numbers, passwords, and other sensitive data earlier this year. No static checklist could have prevented such an intrusion. That is why companies and agencies must move beyond traditional compliance and towards continuous, vigilant cyber-risk management.</p>
<p>Many of your companies were among the more than 3,000 stakeholders convened by NIST to develop the Cybersecurity Framework, a common language for cyber risk management increasingly embraced by companies across America and around the world.</p>
<p>The Commission highlights the Framework as one of the Obama Administration’s signature achievements on cybersecurity. And they outline several ways we can work together to expand its adoption and enhance its utility, including by developing sector-specific best practices and reliable metrics, helping small businesses with affordable implementation, and aligning regulations with the Framework’s principles.</p>
<p>With the Framework, agencies and companies are increasingly speaking the same language of cyber risk. But we still need to remove structural impediments in the way of truly candid collaboration around current and emerging cyber threats.</p>
<p>The problem is that today, relationships between regulators and the businesses they regulate are inherently adversarial – not collaborative. And as someone who spent 27 years building businesses, I get it. We cannot blame executives for worrying that what starts today as an honest conversation about a cyber-threat could end tomorrow in a “punish the victim” enforcement action.</p>
<p>Many of the industry leaders here today have been thought leaders on this issue. The Commission’s recommendations closely mirror your proposal that the FCC allow companies to voluntarily discuss cyber risk with officials under what I call a “reverse Miranda” protection. In other words: nothing you say in this setting will be used against you.</p>
<p>While existing statutes would likely allow for this candid, protected collaboration for regulated critical infrastructure companies, the Commission also recognizes that Congress may need to pass laws that extend to businesses throughout the digital ecosystem.</p>
<p>Don’t get me wrong: we must hold industry to high standards. However, enabling greater cooperation and protecting consumers are not mutually exclusive. Enhancing collaboration between government and industry is not an option – it is a necessity. And we need this teamwork at the most senior levels. That is why the Commission recommends the President establish a new National Cybersecurity Public-Private Program, or NCP-3.</p>
<p>This joint government-industry board would be charged with delineating clear lines of responsibility for protecting critical infrastructure, and organizing operational exercises and training to effectively defend, respond and recover from major threats.</p>
<p>Of course, in both government and in business, we are only as strong as the teams we can assemble. We need a workforce prepared to protect the digital assets of companies and institutions across every sector. At Commerce, our National Initiative for Cybersecurity Education has funded the first-ever grants for community-based cybersecurity training.</p>
<p>But with more than 200,000 openings in cybersecurity nationwide, we must rapidly attract more Americans into this field. That is why the Commission calls for a national talent surge to meet the needs of employers across government and industry. This ambitious effort would include tuition assistance, apprenticeships, and new STEM partnerships between colleges and employers. They also recognize the unique obstacles federal agencies face when it comes to recruiting and retaining top talent – and recommend establishing a Presidential Cybersecurity Fellows Program to attract talented graduates and seasoned professionals into public service</p>
<p>As we equip more workers with the right skills, the Commission also emphasizes that we must bake security into innovative new technologies through greater collaboration and bold new investments in basic research. This is especially vital for the long-term success of products in emerging sectors, like the Internet of Things.</p>
<p>As driverless cars appear on our roads, as medical devices are connected to networks, and as digital technologies permeate more of our everyday lives, our cyber adversaries will have more opportunities to disrupt our economy and threaten our security. Already, Commerce is a leader in bringing public and private sector experts together to solve real-world challenges. </p>
<p>For instance, the NIST-led National Cybersecurity Center of Excellence, brings experts together to deploy-market ready solutions, from securing networked medical devices to increasing the use of multi-factor authentication. And at the National Telecommunications and Information Administration, we continue to engage stakeholders to ensure that the cars, baby monitors, and household appliances of the future are born secure. Whether it is a network router or a home security system, government can work with industry to ensure products are designed with highly-usable interfaces and easily updateable software.</p>
<p>As we educate consumers, industry has a responsibility to make it easy for their customers to do the right thing and hard for them to do the wrong thing. Beyond deploying market-ready technologies, we must also accelerate the discovery of new breakthroughs through basic research. Artificial intelligence, machine learning, and other fields could dramatically enhance our ability to detect and defeat cyber threats. </p>
<p>And throughout our history, government funding of basic research has paid huge dividends to the American people. To secure the technologies of tomorrow we must make bold investments in innovation today.</p>
<p>Whether we are investing in research or educating our workers, one thing is clear: we need the political will to get it done.</p>
<p>Today, I ask you – the owners and operators of our digital infrastructure and the innovators behind some of our greatest technologies – to ensure these recommendations are not just considered, but enacted and implemented.</p>
<p>As the voice of business in government and a federal powerhouse of technical knowledge, the Commerce Department will be your partner and advocate in these efforts. Together, we must ensure this report does not wind up collecting dust on shelves inside the White House, or the Library of Congress, or our corporate breakrooms.</p>
<p>This report provides us with clear steps to secure America’s future in the digital age. It is up to us, as a country, to take them. Thank you, and I wish you a productive conference.</p>
Tue, 06 Dec 2016 10:38:22 -0500kcpullen@doc.govhttps://www.commerce.gov/news/secretary-speeches/2016/12/us-secretary-commerce-penny-pritzker-delivers-keynote-cybersecurityU.S. Secretary of Commerce Penny Pritzker Statement on the Release of New Cybersecurity Report and Recommendationshttps://www.commerce.gov/news/press-releases/2016/12/us-secretary-commerce-penny-pritzker-statement-release-new-cybersecurity
<p>U.S. Secretary of Commerce Penny Pritzker issued the following statement on today’s release of the Commission on Enhancing National Cybersecurity’s (Commission) Report on Securing and Growing the Digital Economy. </p>
<p>“Our society faces a moment of reckoning regarding the security of the networks and devices we depend on in our lives and our work,” said Secretary Pritzker. Today’s report provides a path forward for government, the commercial sector, consumers, and educators to address the challenges before us. The Commission’s recommendations emphasize the need for collaboration among public and private sectors and our international partners in order to strengthen cybersecurity, protect privacy, foster innovation, and ensure public safety and our economic and national security.</p>
<p>“The ideas highlighted in the report transcend different Administrations, Congresses, and different political and economic cycles. These recommendations comprise an urgent action plan for our country to meet today’s cybersecurity crisis. Success will require that we all work together.</p>
<p>“I want to thank Chairman Tom Donilon, Vice Chairman Sam Palmisano, all the Commissioners, as well as Executive Director Kiersten Todt and the experts from Commerce’s National Institute of Standards and Technology who staffed the Commission’s work. My Commerce team and I are honored to have supported this important initiative.”</p>
<p>The full report is available <a href="https://www.nist.gov/document/cybersecurity-commission-report-final-postpdf">here</a>. Information about the Commission’s activities can be found on its <a href="https://www.nist.gov/cybercommission">website</a>.</p>
Fri, 02 Dec 2016 17:05:41 -0500llarrimore@doc.govhttps://www.commerce.gov/news/press-releases/2016/12/us-secretary-commerce-penny-pritzker-statement-release-new-cybersecurityStatement from U.S. Secretary of Commerce Penny Pritzker on U.S. Employment Report for November 2016https://www.commerce.gov/news/press-releases/2016/12/statement-us-secretary-commerce-penny-pritzker-us-employment-report
<p>U.S. Secretary of Commerce Penny Pritzker today released the following statement on the November jobs report, which showed that U.S. employment rose by 178,000 while the unemployment rate decreased to 4.6 percent.</p>
<p>“With today’s jobs report, our labor market expansion has reached 74 consecutive months. During this time, U.S. businesses have added 15.6 million jobs and we’ve watched the unemployment rate drop to its lowest level since August 2007. In November, professional and business services, health care, and construction showed particular strength. This expansion reflects the steady returns that can been reaped through strategic investments in our economy and our people.”</p>
Fri, 02 Dec 2016 13:27:01 -0500kcpullen@doc.govhttps://www.commerce.gov/news/press-releases/2016/12/statement-us-secretary-commerce-penny-pritzker-us-employment-reportU.S. Department of Commerce and Aspen Institute &quot;Playbook&quot; Will Support Local Skills Development Efforts https://www.commerce.gov/news/press-releases/2016/11/us-department-commerce-and-aspen-institute-playbook-will-support-local
<p>U.S. Secretary of Commerce Penny Pritzker and Aspen Institute President and CEO Walter Isaacson <a href="//www.commerce.gov/news/secretary-speeches/2016/11/us-secretary-commerce-penny-pritzker-discusses-workforce-development">today released a playbook</a> intended to help communities develop comprehensive strategies to create a pipeline of skilled workers to fill local jobs.</p>
<p>This playbook reflects the collective experience of seven communities that participated in the inaugural Communities that Work Partnership (CTWP). A joint initiative of the U.S. Department of Commerce and the Aspen Institute, the CTWP strengthens regional economies by equipping American workers with the skills needed for 21st century jobs and accelerating industry-led workforce development and training efforts.</p>
<p>“In order to prepare our workers to fill these jobs, we must encourage communities to develop comprehensive economic growth strategies that incorporate strong talent development plans, informed by the needs of local employers. That is precisely what we have done through the Communities That Work Partnership,” said Secretary Pritzker. “Our goal is to break down silos within regions and ensure that local leaders – from across government, business, education, economic development organizations, and social services – are working together to address the talent development challenges and opportunities.”</p>
<p>“I’m honored that Secretary Pritzker selected the Aspen Institute to lead the Communities that Work Partnership,” said Walter Isaacson, President and CEO of the Aspen Institute. “The Communities that Work Partnership playbook that we’re releasing today captures important insights about the regional partners’ work on strategies to promote a thriving economy in which all contributors—workers, investors, business leaders, and communities—can benefit. It’s our hope that other communities across the US will find the playbook to be a useful resource for their economic and workforce development efforts.”</p>
<p>Through initiatives like the CTWP, the Department of Commerce is working to prepare America’s workers for the in-demand jobs of the 21st century by expanding apprenticeships and encouraging communities to develop comprehensive economic growth strategies. The strategies, or “plays”, highlighted in this playbook incorporate strong talent development plans informed by the needs of local employers.</p>
<p><a href="http://links.govdelivery.com:80/track?type=click&amp;enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTYxMTI5LjY2OTQ5ODAxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE2MTEyOS42Njk0OTgwMSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2ODc0MjEzJmVtYWlsaWQ9a2NwdWxsZW5AZG9jLmdvdiZ1c2VyaWQ9a2NwdWxsZW5AZG9jLmdvdiZ0YXJnZXRpZD0mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&amp;&amp;&amp;100&amp;&amp;&amp;http://www.aspenwsi.org/wordpress/wp-content/uploads/CTWP-Playbook-Final-Nov-28-2016.pdf">Click here</a> to view the full report. </p>
Tue, 29 Nov 2016 17:03:54 -0500kcpullen@doc.govhttps://www.commerce.gov/news/press-releases/2016/11/us-department-commerce-and-aspen-institute-playbook-will-support-localU.S. Secretary of Commerce Penny Pritzker Discusses Workforce Development at Communities that Work Partnership Eventhttps://www.commerce.gov/news/secretary-speeches/2016/11/us-secretary-commerce-penny-pritzker-discusses-workforce-development
<p>Today, U.S. Secretary of Commerce Penny Pritzker delivered opening remarks at the Communities that Work Partnership’s (CTWP) capstone event. A joint initiative of the Department of Commerce and the Aspen Institute, the CTWP strengthens regional economies by equipping American workers with the skills needed for 21st century jobs and accelerating industry-led workforce development and training efforts. At the capstone event, CTWP <a href="http://links.govdelivery.com:80/track?type=click&amp;enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTYxMTI5LjY2OTQzODkxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE2MTEyOS42Njk0Mzg5MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2ODc0MTU3JmVtYWlsaWQ9a2NwdWxsZW5AZG9jLmdvdiZ1c2VyaWQ9a2NwdWxsZW5AZG9jLmdvdiZ0YXJnZXRpZD0mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&amp;&amp;&amp;100&amp;&amp;&amp;http://www.aspenwsi.org/wordpress/wp-content/uploads/CTWP-Playbook-Final-Nov-28-2016.pdf">released a playbook</a> that will serve as a guide for communities across the country to strengthen local talent pipelines and improve access to quality employment.</p>
<p>During her remarks, Secretary Pritzker underscored the Department of Commerce’s commitment to working with communities and industry to create business-led, job-driven, and locally determined solutions to addressing the skills gap. Through initiatives such as the CTWP, Commerce is working to prepare America’s workers for the in-demand jobs of the 21st century by <a href="http://links.govdelivery.com:80/track?type=click&amp;enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTYxMTI5LjY2OTQzODkxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE2MTEyOS42Njk0Mzg5MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2ODc0MTU3JmVtYWlsaWQ9a2NwdWxsZW5AZG9jLmdvdiZ1c2VyaWQ9a2NwdWxsZW5AZG9jLmdvdiZ0YXJnZXRpZD0mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&amp;&amp;&amp;101&amp;&amp;&amp;https://www.commerce.gov/news/press-releases/2016/11/us-department-commerce-report-shows-business-case-apprenticeships">expanding apprenticeships</a> and encouraging communities to develop <a href="http://links.govdelivery.com:80/track?type=click&amp;enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTYxMTI5LjY2OTQzODkxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE2MTEyOS42Njk0Mzg5MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2ODc0MTU3JmVtYWlsaWQ9a2NwdWxsZW5AZG9jLmdvdiZ1c2VyaWQ9a2NwdWxsZW5AZG9jLmdvdiZ0YXJnZXRpZD0mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&amp;&amp;&amp;102&amp;&amp;&amp;https://www.commerce.gov/news/blog/2016/11/communities-work-partnerships-new-approaches-and-strategies-economic-and-workforce">comprehensive economic growth strategies</a>. These strategies incorporate strong talent development plans informed by the needs of local employers. In closing, Secretary Pritzker thanked CTWP partners for their efforts to build the more talented, more skilled workforces that American communities need to thrive.</p>
<p><strong><em>Remarks as Prepared for Delivery</em></strong></p>
<p>Walter, thank you for that kind introduction, for your friendship, and for your partnership in making local, regional, and national workforce development efforts more job-driven. It’s been 18 months since the Commerce Department joined forces with the Aspen Institute to launch the Communities That Work Partnership. In that time, we have seen anxiety over the changing nature of work grow into one of the prevailing forces in American politics.</p>
<p>This anxiety stems from a simple fact: while our economy continues to expand, the gains are not felt evenly or immediately. While the unemployment rate is low and the number of jobs is up considerably, the share of Americans actually working is still down from before the recession. </p>
<p>Underlying some of this pain are three technology-driven forces that are charging ahead whether we accept them, whether we like them, or whether we fight them: globalization, automation, and digitization. These forces are disrupting our communities, our workers, and our businesses. Many understandably are feeling left behind.</p>
<p>The question facing all of us here today is, how do we – as business leaders, as academics, as policymakers – help our people adjust to a world where the very nature of work is changing every day? Although there is no one-size-fits-all answer, any solution to our workforce challenges must be business-led and community-driven. In other words, the solutions are local. Consider this: while there are 7.8 million unemployed workers in the U.S., employers are currently looking to fill 5.5 million open jobs.</p>
<p>What is wrong with that picture?</p>
<p>To prepare our workers to fill these jobs, we must encourage communities to develop comprehensive economic growth strategies that incorporate strong talent development plans, informed by the needs of local employers. That is precisely what we have done through the Communities That Work Partnership. Our goal is to break down silos within regions and ensure that local leaders – from across government, business, education, economic development organizations, and social services – are working together to address the talent development challenges and opportunities.</p>
<p>Joining us today are representatives from Houston, Buffalo, and Prince George's County – three of the seven communities that participated in the Communities that Work Partnership. Their collective efforts have produced a playbook that can serve as a guide for other communities.</p>
<p>Earlier this year, I saw firsthand how the tenets outlined in this playbook can make a real difference during a visit to Houston. Their local economy has been hard hit by local oil prices, which has led to job loss. But regional leaders recognized an opportunity to retrain oil and gas workers for professions in a bright spot in their local economy: the petrochemical sector.</p>
<p>During a roundtable discussion at a local manufacturer, I heard from industry, educational institutions, and community leaders about how they have come together to develop a comprehensive workforce partnership and build a talent pipeline. Business leaders mapped the demand they had in petrochemicals and construction. They coordinated with social services to ensure that workers undergoing mid-career training had the safety net they needed to succeed. And they worked with K-12 schools, community colleges, and universities to launch a “prototyping” based workforce training program, where multiple new programs are developed and run simultaneously. </p>
<p>This allows their community to take the best components of each prototype and use them to refine their programs in real time as they rapidly expand their workforce programs. Houston’s approach to tackling their workforce challenges was effective because it was designed and tailored to their specific community. But while solutions have to be local, lessons can be gleaned and applied nationally. </p>
<p>Today is an opportunity to learn from each other, to hear more from our community partners about the progress they are making, and for each region to share best practices and lessons learned. Because of the diligence that each of you have committed to this partnership, we are building the more talented, more skilled workforces that American communities need to thrive. Thank you all for your commitment to integrating economic development with workforce training, and congratulations on the great success you have already achieved. </p>
Tue, 29 Nov 2016 15:34:28 -0500kcpullen@doc.govhttps://www.commerce.gov/news/secretary-speeches/2016/11/us-secretary-commerce-penny-pritzker-discusses-workforce-developmentU.S. Fact Sheet on 27th U.S.-China Joint Commission on Commerce and Tradehttps://www.commerce.gov/news/fact-sheets/2016/11/us-fact-sheet-27th-us-china-joint-commission-commerce-and-trade
<h2><strong>PARTICIPANTS</strong></h2>
<p>U.S. Secretary of Commerce Penny Pritzker and U.S. Trade Representative Michael Froman, together with Chinese Vice Premier Wang Yang, co-chaired the 27th U.S.-China Joint Commission on Commerce and Trade (JCCT) meetings in Washington, D.C., on November 2123, 2016. They were joined by U.S. Secretary of Agriculture Tom Vilsack to address agricultural issues. </p>
<p>Other U.S. participants included U.S. Ambassador to China Max Baucus, U.S. Trade and Development Agency Director Leocadia Zak, and additional representatives from the U.S. Departments of Agriculture, Commerce, Justice, State and Treasury and the Office of the U.S. Trade Representative. </p>
<p>Other Chinese participants included China’s Ambassador to the United States Cui Tiankai and representatives from the State Council, the National Development and Reform Commission, the Ministries of Agriculture, Commerce, Finance, Foreign Affairs, Industry and Information Technology, Public Security and Science and Technology, Transportation, the China Civil Aviation Administration, the China Food and Drug Administration, the China Insurance Regulatory Commission, the China National Tourism Administration, the General Administration of Customs, the General Administration of Quality Supervision, Inspection and Quarantine, the National Health and Family Planning Commission, the State Administration for Industry and Commerce, the State Forestry Administration, the Cyberspace Administration of China, State Intellectual Property Office, the State Internet Information Office, the State-owned Assets Supervision and Administration Commission, the Legislative Affairs Office of the State Council and the State Administration of Press, Publication, Radio, Film and Television. <br />
</p>
<h2><strong>OVERVIEW</strong></h2>
<p>As key trading partners and the world’s two largest economies, the United States and China share a mutual interest in promoting economic prosperity, both nationally and globally, through cooperative and constructive bilateral engagement under the auspices of the JCCT. During the 27<sup>th</sup> meeting of the JCCT, the two sides focused on ensuring the fulsome implementation of past JCCT commitments and also announced further concrete commitments to promote open trade and investment. The two sides also announced future dialogues and collaborative and capacity building efforts. <br />
</p>
<h2><strong>ENSURING FULL IMPLEMENTATION OF PAST COMMITMENTS</strong></h2>
<p>The following outcomes were achieved with regard to China’s ongoing implementation of commitments secured by the United States during past JCCT and other high-level bilateral meetings: </p>
<h3>DE-LINKING INNOVATION POLICY FROM GOVERNMENT PROCUREMENT PREFERENCES</h3>
<p><em>In 2011, after global expressions of concern and intensive U.S. engagement, China ordered subnational governments to abolish government procurement preferences for innovative products developed indigenously. While that action represented a key recognition by China, compliance with the measure proved to be incomplete, and new inconsistent measures continue to come into force. The United States welcomes China’s renewed attention to implementation of this critical commitment in 2016 and beyond</em>.</p>
<p>The General Affairs Office of the State Council issued a document recently, requiring all local regions and all agencies to further clean up related measures involving linking the indigenous innovation policy to the provision of government procurement preferences, so as to practically implement the commitment made by the Chinese side. The U.S. side welcomes this development.</p>
<h3>PHARMACEUTICALS AND MEDICAL DEVICES</h3>
<p><em>China is the second largest pharmaceutical market in the world, forecasted to grow from $108 billion in 2015 to $167 billion by 2020, representing an annual growth rate of 9.1 percent. China is the fourth largest medical device market in the world, with sales forecasted to grow from $17.8 billion in 2015 to $27 billion by 2020, representing an annual growth rate of 8.7 percent. </em></p>
<ul>
<li>Policies of the Chinese government in promoting development and application of domestically produced medical devices, are to encourage domestic industrial development, and will not discriminate against or exclude overseas brands or products manufactured overseas. Relevant policies and measures of the central government departments are intended to strengthen advocacy; to establish cooperative platforms for government, industry, academic, research and medical institutions; to improve the quality and standard of domestic medical devices; and shall not be linked to procurement practices. In accordance with relevant laws and regulations, China commits to strengthen oversight on government procurement of medical devices and to treat overseas brands and products manufactured overseas in a transparent, fair and equitable manner, and both sides stand ready to further communicate with parties concerned.<br />
</li>
<li>China has issued two batches of Class II Medical Device Clinical Trial Exemption Catalogues and Class III Medical Device Clinical Trial Exemption Catalogues. China will continue to develop and work on the drafting and adjustment of the Medical Device Clinical Trial Exemption Catalogues. During the development process, China will listen to opinions from industry and relevant stakeholders.<br />
</li>
<li>The Chinese side encourages clinical-value-oriented innovative drugs to be registered and marketed in China, and will further improve related policies, regulations and technical requirements to improve the drug registration review and approval process, to allow drug registration applicants, after approval, to conduct clinical trials within and outside of the territory in parallel, and to allow overseas drug manufacturers to supplement the certificate of pharmaceutical product (CPP) when applying for drug marketing license.<br />
</li>
</ul>
<h2><strong>NEW COMMITMENTS SECURED IN 2016</strong></h2>
<p>The United States secured the following outcomes from China on a wide range of key trade and investment issues impacting U.S. workers, manufacturers, service providers, farmers, ranchers and small businesses: </p>
<h3>AVIAN INFLUENZA</h3>
<p><em>The United States and China will collaborate to limit trade restrictions due to avian influenza outbreaks. </em></p>
<p>As Member countries to the World Organization for Animal Health (OIE), China and the United States recognize that the OIE’s Terrestrial Animal Health Code provides the sanitary requirements for the safe trade of poultry commodities related to avian influenza, and commit to limit trade restrictions due to avian influenza outbreaks to those recommendations. China and the United States commit to exchange information and collaborate on the efforts that will lead to the recognition of zones free of high pathogenicity and low pathogenicity (subtypes H5 and H7) avian influenza consistent with the recommendations of the OIE Terrestrial Animal Health Code to minimize unnecessary disruptions of trade.<br />
</p>
<h3>COMPETITION</h3>
<p><em>China made a number of important and welcome clarifications and commitments regarding enforcement of China's Anti-Monopoly Law (AML) during the JCCTs and S&amp;EDs of the past two years. Recognizing the importance transparency provides to help parties, including U.S. companies, and the public understand their procedural rights under the AML, China has clarified that it has provided on the websites of the anti-monopoly enforcement agencies, and will update in a timely fashion, its laws, rules, regulations and guidelines, as well as enforcement decisions. </em></p>
<p>The United States welcomed China’s clarifications and commitments made in the 2014 and 2015 JCCTs and S&amp;EDs regarding Anti-Monopoly Law (AML) enforcement. China clarifies that its laws, regulations, rules, and guidelines, as well as decisions on administrative penalties and merger reviews (published pursuant to AML Art. 30), are published on the websites of China’s anti-monopoly enforcement agencies and will be updated in a timely manner.<br />
</p>
<h3>EXCESS CAPACITY</h3>
<p><em>Excess capacity and structural problems in steel and other industries is a global challenge which requires collective responses. Building on prior commitments, including ones made in the September 2016 G20 Leaders Communiqué, in the summit statement for the September 2016 meeting between President Obama and China’s President Xi in Hangzhou, China, and during prior JCCTs and U.S.-China Strategic and Economic Dialogues, among other fora, the United States and China agreed to intensify their dialogue relating to excess capacity in the steel, aluminum and soda ash industries. </em></p>
<ul>
<li>
<p><strong>Steel: </strong>China and the United States agree to jointly promote the expeditious establishment of the Global Forum on Steel Excess Capacity. Upon the establishment of this Global Forum, the United States and China, recognizing the G20 Leaders’ commitment to take effective steps to address the challenges of global excess capacity so as to enhance market function and encourage adjustment, commit to actively participate and strengthen information sharing and cooperation. China and the United States will hold an informal China-U.S. JCCT Steel Dialogue in 2017, to fulfill the consensus reached at the G20 Leaders Hangzhou Summit and the 8th U.S.-China Strategic and Economic Dialogue in June, exchange and share global steel development information, review steel capacity and production and the trade situation since the 2016 JCCT Steel Dialogue, and share the experiences and lessons learned with regard to structural adjustment under the circumstances of excess capacity.<br />
</p>
</li>
<li><strong>Aluminum:</strong> The United States and China are to exchange information in furtherance of their joint commitment at the G20 Leaders Hangzhou Summit, i.e., to work together to address global electrolytic aluminum excess capacity. <br />
</li>
<li><strong>Soda Ash:</strong> The United States and China are to exchange information regarding the soda ash industry.<br />
</li>
</ul>
<h3>FOOD SAFETY COOPERATION FOR IMPORTED FOODS</h3>
<p><em>Food safety is a key issue of global concern. China and the United States recognize the importance of addressing and resolving food safety issues to protect public health and facilitate trade in safe food. Chinese and U.S. food safety agencies cooperate through existing mechanisms, including the JCCT, to further enhance food safety cooperation. </em></p>
<p>Building on the 2015 JCCT commitments to cooperate on food safety matters, China and the United States conducted technical discussions about their respective certificate requirements for imported foods. Both sides agree to further cooperation and discussions regarding import requirements related to food safety.<br />
</p>
<h3>INNOVATION POLICY</h3>
<p><em>China’s passage of the Cybersecurity Law in 2016, and potential implementing measures, could restrict the use of foreign information and communication technology (ICT) products and services in a wide range of commercial sectors. China’s “secure and controllable” policy direction, included in both the Cybersecurity Law and numerous other government measures in the past few years, has been of serious concern to global stakeholders. The outcome below extends commitments made by China on information security policy to its “secure and controllable” measures. </em></p>
<p>The United States and China believe that innovation is a key driver for economic development, job creation, and shared prosperity, and innovation plays a vital role in developing solutions to domestic, international, and social challenges. The two sides further recognize that the ability of China and the United States to carry out trade, business, and joint innovation will help promote the well-being of both peoples and promote global economic growth. </p>
<p>Recognizing the importance of interconnected global digital infrastructures and the value of innovative technologies in effectively managing evolving new risks, the two sides recognize that generally applicable Information and Communications Technology (ICT) security-related measures in their respective countries in commercial sectors do not discriminate unnecessarily or unnecessarily restrict trade or the flow of information in an orderly fashion.</p>
<p>China explained that its “secure and controllable” policies generally applicable to the commercial sector are not to unnecessarily limit or prevent commercial sales opportunities for foreign suppliers, of ICT products, services, or technologies and will not impose nationality-based conditions and restrictions on the purchase, sale, and use of ICT by commercial enterprises unnecessarily.</p>
<p>In accord with China’s obligations under the WTO Technical Barriers to Trade (TBT) Agreement, it will notify relevant technical regulations to the WTO TBT Committee.<br />
</p>
<h3>INTEGRATED CIRCUITS</h3>
<p><em>In 2015, U.S. semiconductor, or integrated circuit, companies accounted for one-half of the $335 billion global market. China represents the largest single end-market for U.S. semiconductors, and semiconductors were one of China’s top imports in 2015, with U.S.-manufactured semiconductors representing 52 percent of China’s total semiconductor imports. To ensure a vibrant global semiconductor innovation ecosystem, it is vital that the industry be guided by the principles of openness, transparency, inclusiveness, non-discrimination and consistency with WTO obligations. </em></p>
<p>China and the United States jointly reaffirm their commitment to a strong, vibrant global semiconductor industry that operates in fair, open and transparent legal and regulatory environments. China reaffirms that operation of the integrated circuit investment funds are based on market principles and that the government does not interfere with the normal operation of the funds. China clarifies that the government has never asked the fund to require compulsory technology or IPR transfer as a condition for participation in the Funds’ investment projects. The United States welcomes China’s clarification and further exchange on this topic.<br />
</p>
<h3>INTELLECTUAL PROPERTY RIGHTS</h3>
<p><em>The United States is a leader in technology, the creative arts, and strong brands, propelled in part by the effective protection and enforcement of intellectual property rights. In 2014, intellectual property-intensive industries accounted for nearly 40 percent of U.S. gross domestic product, over one-half the value of U.S. merchandise exports, and the direct or indirect employment of over 45 million Americans. Trade secrets protection is important to a broad cross section of U.S. companies, while trademark-, copyright- and patent-intensive industries each contribute millions of jobs to the U.S. economy. China represents major opportunities for U.S. intellectual property-intensive industries, yet the need to strengthen the protection and enforcement of intellectual property rights remains a critical challenge. The JCCT is the primary bilateral venue to address these challenges in China, as reflected in the following outcomes. </em></p>
<h3>Bad Faith Trademarks</h3>
<p>Affirming their long-standing cooperation on administrative and judicial trademark issues, the United States and China agree that trademarks obtained and asserted in bad faith hinder legitimate commerce, mislead consumers, and deter investment in building global brands. The United States appreciates the positive efforts China has made under the new Trademark Law.</p>
<p>Building upon this, China will take further efforts to combat bad faith trademark filings. Moreover, the United States and China will continue to prioritize the issue of bad faith trademark filings, and both sides will strengthen exchanges and communication through bilateral and multilateral channels. </p>
<h3>Licensing</h3>
<p>China is actively conducting research on the Technology Import and Export Administration Regulations (2002) (TIER) to address U.S. concerns, to support China’s efforts to become an innovative economy, and to better address newly emerging areas of technology transfer. To that end, MOFCOM will convene a joint seminar with the United States in the first quarter of 2017. </p>
<h3>Online Infringement of Intellectual Property Rights and Piracy</h3>
<p>The United States and China fully recognize the significance that enforcing against infringement and counterfeiting online has in protecting intellectual property rights and consumers, and fostering a fair competitive market.</p>
<p>The two sides will strengthen cooperation with right holders and e-commerce platforms to actively and jointly promote the training of U.S. and Chinese small and medium-sized enterprises by e-commerce platforms on protecting intellectual property rights, to help them to use these platforms to foster international trade. Both sides will explore the use of big data and other new information technologies to enhance the capability for combating infringement and counterfeiting online.</p>
<p>China will actively promote e-commerce-related legislation, strengthen the supervision over network infringement and counterfeiting. In order to address suspected instances of online criminal piracy and trademark counterfeiting in the United States affecting Chinese right holders, the Joint Liaison Group (JLG) IP Criminal Enforcement Working Group point of contact in the U.S. Beijing Embassy will receive such referrals from China’s administrative agencies.</p>
<h3>Sports Broadcast Copyright Protection</h3>
<p>The United States and China will continue to implement the consensus reached by the China - US Joint Commission on Commerce and Trade (JCCT) in 2015 on sports broadcasts. To facilitate the implementation of the commitments, the United States and China confirm that broadcasts of sporting events, including when transmitted over the Internet, should be protected under their respective laws and regulations. China is committed to further study the feasibility of protecting the broadcasts of sporting events under its Copyright Law. China understands the view of the United States that other forms of protection (the Tort law, the Unfair Competition Law, etc.) provide insufficient protection or legal certainty to facilitate license agreements or the investments made in obtaining the rights to broadcast live sporting events. The United States welcomes further clarification on the circumstances under which copyright is available for live sports broadcasts from the Chinese judiciary at the earliest possible time. The United States and China further agree to deepen their technical discussions on copyright protection for sports broadcasts, including by convening a program on the subject in 2017.</p>
<h3>Trade Secrets</h3>
<p>China confirmed that it is strengthening China’s trade secrets protections, including through planned amendments to the Anti-Unfair Competition Law (AUCL), and related judicial practice. China confirms that, in practice, trade secrets misappropriation may be committed by individuals, including employees, who may not be directly involved in the manufacture or sale of goods and services. China plans to bolster other elements of its trade secrets regime, including with respect to the availability of evidence preservation orders and damages based on market value, consistent with other developments in intellectual property law in China, as well as the issuance of a judicial interpretation on preliminary injunctions and other matters. Both sides confirm that, in those cases in which a judicial or administrative enforcement authority requests the submission of confidential information in conjunction with a trade secret enforcement matter, such requests will be narrowly tailored to avoid putting at risk sensitive business information and will be subject to appropriate protective orders to control additional disclosure and ensure that information is not further misappropriated and that any decision that is made publicly available in conjunction with a trade secret enforcement matter will have all confidential information appropriately redacted. The United States and China confirm that trade secret investigations are conducted in a prudent and cautious manner.<br />
</p>
<h3>MUSIC LICENSING </h3>
<p>T<em>he Chinese music industry grossed $170 million in 2015. China digital music revenues climbed 63.8 percent in 2015. China has 650 million Internet users, 72 percent of China’s population listens to music regularly, and 66 percent of music listeners use a streaming service in a typical week.</em></p>
<p>China commits to issue a measure allowing foreign-invested enterprises to engage in online music distribution and revoking the requirement established by the Ministry of Culture’s 2009 Circular on Strengthening and Improving Online Music Content Examination.<br />
</p>
<h3>PHARMACEUTICALS AND MEDICAL DEVICES</h3>
<p><em>The U.S. pharmaceuticals industry directly employs more than 850,000 workers, directly and indirectly supports a total of 4.4 million jobs in the United States, and provides annual compensation to its workers at approximately twice the average for all U.S. workers. China is the second largest pharmaceutical market in the world, with sales estimated at $109 billion in 2015. </em></p>
<p><em>The U.S. medical devices industry directly employs more than 519,000 workers, supports a total of 1.9 million jobs in the United States, and provides annual compensation at nearly twice the national average. It includes over 7,000 companies, most of which have less than 100 employees. China is the fourth largest medical device market in the world, with sales estimated at $18 billion in 2015. The United States is the leading supplier of medical devices to China in all product areas, with exports valued at $4.2 billion in 2014. </em></p>
<p><em>The outcomes below will facilitate greater exports to China and allow for better patient outcomes. </em></p>
<h3>Company Verification</h3>
<p>The Chinese side, while working on case review, sometimes cannot obtain timely information that accurately reflects changes that happened with foreign registrant’s registration and due to this lack of accurate information case review is delayed. Therefore, both sides hope to establish a communication channel, and U.S. government will provide appropriate assistance with the verification of relevant information about a foreign registrant according to CFDA’s requests, and timely respond to CFDA. Agreement on this work has been reached in the Medical Device Subgroup, and it will begin after both sides clarify the contact point and contact method.</p>
<h3>Down Classification</h3>
<p>Since April 2015, China has amended the Medical Device Classification Rules, formed the Medical Devices Classification Technical Committee, organized and carried out the work to fully amend the Medical Device Classification Catalogue, and has suggested the reclassification of products such as allergy reagents, IVDs used for flow cytometry reagents and immunohistochemistry. China’s work on adjusting medical device classification referenced the commonly recognized and risks based principles, and combined with China’s regulatory reality, appropriately downgraded device classes. The revised catalogue will be released after seeking further public comments and research as well as making improvements accordingly.</p>
<h3>Unique Device Identification (UDI)</h3>
<ul>
<li>China highly values international UDI research and development and implementation experience. During the drafting of China’s identification number regulations and implementing plans, China will fully consider the U.S. proposal to rely on international standards and harmonize with globally accredited UDI issuing agencies, and China will offer a phased-in and risk-based implementation approach, with an initial implementation period for phase I to be no less than 2 years from issuance of the final rule, and exempting all devices manufactured or labeled prior to the rule’s effective date.<br />
</li>
<li>Based on China’s current situation, the Chinese side will study international experience, to further complete the building plan of China’s UDI and traceability system and establish medical device identification number regulations. During the drafting of the medical device identification number regulations and implementing plans, China will consider international standards, globally accredited issuing agencies and other international UDI guideline topics.</li>
</ul>
<h3>Pharmaceutical Regulatory Evaluation and Approval</h3>
<p>China and the United States support pharmaceutical regulatory policies that foster global innovation and protect public health. As for the implementation of drug pricing commitments, China affirms that drug registration review and approval shall not be linked to pricing commitments and shall not require specific pricing information.<br />
</p>
<h3>SOCIAL CREDIT SYSTEM</h3>
<p><em>China recently established a comprehensive “Social Credit System” that is intended to address deficiencies in social trust, strengthen access to financial credit instruments, and reduce corruption. As part of the Social Credit System, relevant Chinese agencies will collect and publicize information on market participants. The Social Credit System also includes a blacklist approach for “dishonest market participants.” Given the potential impact on U.S. companies doing business in China, the United States welcomes China's commitment to transparency and public participation in rulemaking as relevant agencies develop the Social Credit System. </em></p>
<p>China attaches importance to guiding public participation during the process of promoting the construction of its Social Credit System. China, in accordance with relevant domestic laws and administrative regulations, will seek public comments on the website Credit China (<a href="http://www.creditchina.gov.cn">www.creditchina.gov.cn</a> &lt;<a href="http://www.creditchina.gov.cn/&gt;">http://www.creditchina.gov.cn/&gt;</a>) and other relevant websites when it develops laws, administrative regulations and rules relevant to the Social Credit System.<br />
</p>
<h3>TBT AND SPS NOTIFICATION PROCESSES</h3>
<p><em>Under the WTO Agreement on Technical Barriers to Trade (TBT Agreement) and the WTO Agreement on the Application of Sanitary and Phytosanitary Measures (SPS Agreement), WTO Members are required to notify other Members through the WTO Secretariat of proposed mandatory standards-related measures, including technical regulations, conformity assessment procedures, and sanitary and phytosanitary measures, before entry into force. Under both agreements, WTO Members are required to notify the proposed measures as early as possible and at a time when amendments to the measures can still be introduced and taken into account. Both TBT and SPS Committees recommend at least a 60-day comment period. This process improves transparency of WTO Members’ regulatory processes, helping U.S. firms obtain greater predictability and engagement in a country’s rulemaking process. </em></p>
<p>The United States and China agree to hold an informational exchange on “TBT and SPS Notification Procedures” in China in 2017. The United States commits, subject to applicable law and the availability of necessary resources, to cover all expenses related to the activity, including costs of the venue, and interpreters. To strengthen their common understanding, China and the United States commit to work together to develop the content and agendas for the exchange, send expert speakers, and invite staff in charge of TBT and SPS transparency from both sides to participate.<br />
</p>
<h3>THEATRICAL FILMS</h3>
<p><em>Since the signing of the U.S.-China MOU on theatrical films in 2012 following a successful WTO dispute challenging certain Chinese market access restrictions, China’s film market has been growing exponentially, becoming the second largest in the world in terms of box office revenue. In 2011, the year before the MOU went into effect, box office revenues in China totaled $2.1 billion. By 2015, box office revenues had surged to $6.8 billion, representing a quadrupling of the 2011 total, and it has continued to grow in 2016. U.S. industry has shared in much of this increased revenue, in large part because the MOU provided for substantial increases in the number of foreign films imported and distributed in China each year and substantial additional revenue for foreign film producers than prior to the signing of the MOU. The MOU calls for the United States and China to engage in further negotiations in 2017 in order to provide additional compensation to the U.S. side, and China has agreed below that these negotiations can and should address a range of outstanding U.S. concerns relating to policies and practices that may still be impeding the U.S. film industry’s access to China’s market. </em></p>
<p>In accordance with the provisions of paragraph 12 of the Memorandum of Understanding between the People’s Republic of China and the United States of America Regarding Films for Theatrical Release (MOU) signed on April 25, 2012, China affirms that it will enter into consultations with the United States in calendar year 2017 in order to provide further meaningful compensation to the United States. To this end, the United States and China agree that, as part of the calendar year 2017 consultations, they will seek to increase the number of revenue-sharing films to be imported each year and the share of gross box office receipts received by U.S. enterprises as well as seek to address outstanding U.S. concerns relating to other policies and practices that may impede the U.S. film industry’s access to China’s market such as importation rights, the number of distributors of imported films and the independence of distributors, among other issues.<br />
</p>
<h3>TRADE POLICY COMPLIANCE</h3>
<p><em>The United States understands that China has begun to take corrective actions to address serious WTO concerns relating to certain Chinese government subsidy programs. </em></p>
<p>The United States and China affirm their willingness to consider each side’s respective concerns relating to the compliance of trade policies with relevant WTO principles and disciplines. The United States welcomes China’s confirmation that the Ministry of Commerce has coordinated with relevant departments and local governments regarding U.S. concerns relating to International Well-Known Brand subsidies and farm machinery subsidies and that China is prepared to adjust the measures at issue as necessary. The two sides are to continue to consult regarding these two matters in 2017.<br />
</p>
<h2><strong>DIALOGUES AND EXCHANGES</strong></h2>
<h3>ADMINISTRATIVE LAW DIALOGUE</h3>
<p>The United States and China held a productive joint exchange on administrative law issues, including those arising in the sub-central level of government, in Washington, D.C., and Annapolis, Maryland in May 2016. The two sides will continue their joint exchange on administrative law issues in China in 2017 to discuss administrative law topics of interest to our business communities.</p>
<h3>COMBATING BUSINESS EMAIL COMPROMISE SCAMS </h3>
<p>China and the United States announced deepening cooperation on combating “Business Email Compromise” scams at the S&amp;ED in 2016. On this basis, to supplement ongoing law enforcement cooperation, DOC and MOFCOM commit to hold a joint seminar in 2017 to raise awareness of Business Email Compromise scams among industry circles of both countries. This joint seminar will include law enforcement officials and private sector representatives from each country.</p>
<h3>COSMETICS REGULATORY DIALOGUE</h3>
<p>Recognizing the need for further collaboration and exchange on international best practices in cosmetics regulation, building on the 2016 JCCT Cosmetics Regulatory Dialogue, China and the United States agree to hold a second Cosmetics Regulatory Dialogue in Beijing in 2017 (aiming for first half of the year) under the JCCT Trade and Investment Working Group. The Dialogue will include participation from government officials and stakeholders, including industry experts. Through the Dialogue, the two sides aim to enhance mutual understanding of existing and emerging cosmetics regulations, guidance, standards and regulatory practices; promote consumer protection; and continue concrete exchanges on shared topics of interest.</p>
<h3>ENVIRONMENTAL INDUSTRIES FORUM</h3>
<p>The United States and China reaffirm their commitment to continued cooperation on environmental protection through the Environmental Industries Forum (EIF). The two countries plan to convene the next EIF in 2017 and address the topics of waste management and soil contamination, including groundwater pollution prevention and remediation.</p>
<h3>HEALTHCARE TRADE MISSION TO CHINA </h3>
<p>With the goal of promoting healthcare trade between the United States and China, the U.S. Department of Commerce Deputy Secretary and the U.S. Department of Health and Human Services Deputy Secretary led a U.S. healthcare company delegation to Beijing and Chongqing on October 16-21, 2016, and held productive discussions with various Chinese ministries.</p>
<h3>IPR COOPERATION</h3>
<p>Both parties are to continue to develop the leading coordinating role of the U.S.-China JCCT IPR Working Group, to resolve IPR-related issues of concern to both parties, and to strengthen their cooperation which forms an underlying basis of their intellectual property relationship.</p>
<p>Both China and the United States commend the U.S. IPR Judicial Study Tour held in April 2016 under the U.S.-China IPR Cooperative Framework Agreement (“CFA”). Both the United States and China attach great attention to the realization of relevant projects under the CFA, and intend to carry out IPR cooperation and exchange projects. Both sides will discuss launching a possible new Cooperative Framework Agreement and new cooperative programs, subject to budget availability, after completion and evaluation of remaining programs under the current CFA.</p>
<p>China’s Ministry of Commerce and the U.S. Patent &amp; Trademark Office will continue cooperative programs on a range of IP-related topics.</p>
<p>In order to demonstrate a commitment to fostering cooperation between governments and rights holders, combatting IPR infringement, and promoting innovation and creativity, both countries are to conduct numerous substantive exchanges and programs on important IPR issues in the year ahead. Highlights of this work are as follows:</p>
<ul>
<li>A technology licensing program co-sponsored by the Ministry of Commerce;</li>
<li>A program on protection of live sports broadcasts with the National Copyright Administration, and relevant agencies;</li>
<li>A program to exchange information on China’s legal protections for product and service designs, and U.S. trade dress protections;</li>
<li>Programs on criminal enforcement of trade secrets and counterfeit pharmaceuticals;</li>
<li>A joint conference in 2017 to share experiences on recent trends in technologies, business models, and international legal developments and to discuss possible ways that criminal law, legislation, and enforcement on IPR may be effectively utilized and adapted to address current and emerging IPR challenges; and</li>
<li>A workshop on Judicial IPR Protection in China in 2017.</li>
</ul>
<h3>LEGAL EXCHANGE</h3>
<p>The 20th U.S.-China Legal Exchange was held in Alexandria, Virginia and Palo Alto, California in February and March 2016. In a dynamic and fruitful discussion, legal experts from both sides addressed two topics of key concern to both sides: developments in China’s intellectual property rights (IPR) laws, and e-commerce and IPR. China and the United States agreed to convene the 21st Legal Exchange in Beijing and Shanghai in December 2016 on bankruptcy law topics, to deepen understanding of our respective bankruptcy systems and share ideas on bankruptcy law reform.</p>
<h3>MOU ON AFRICA CENTERS FOR DISEASE CONTROL</h3>
<p>The U.S. Agency for International Development, People's Republic of China (PRC) Ministry of Commerce, U.S. Department of Health and Human Services, PRC National Health and Family Planning Commission, and U.S. Centers for Disease Control and Prevention signed a Memorandum of Understanding (MOU) today on jointly supporting the Africa Centers for Disease Control and Prevention (Africa CDC). This MOU provides a framework for how the two countries will jointly support building public health capacity and global health security in Africa. The two countries will join efforts to address critically needed public health capacity to control, eliminate, and fight diseases, including providing training, technical assistance, and financial support to the Africa CDC.</p>
<h3>REVERSE TRADE MISSION MOU</h3>
<p>U.S. Trade Development Agency (USTDA) and China’s Ministry of Commerce (MOFCOM) signed a Memorandum of Understanding (MOU) to support a second Select Reverse Trade Mission Initiative for China. The purpose of this initiative is to further USTDA cooperation with MOFCOM on targeted reverse trade mission (RTM) activities for public and private sector entities. Similar to the first set of Select RTMs, USTDA and MOFCOM would partner to facilitate up to four reverse trade mission activities to the United States that would introduce Chinese buyer delegations to U.S. products and services that support China’s development and procurement plans. RTM activities would be selected from among the most promising opportunities in the following sectors: healthcare, transportation, information and communications technology, clean energy, environment and agriculture.</p>
<h3>STATISTICS COOPERATION</h3>
<p>The United States and China value the outcomes achieved by Statistics Working Group under the Joint Commission on Commerce and Trade. During the 13th meeting of the working group held on November 8-9, 2016, both sides reviewed the progress of each research topic, confirmed the new method for further reducing the statistical discrepancies of bilateral merchandise trade, analyzed the causes for the statistical discrepancies of China’s foreign direct investment in the United States, and discussed the further analysis of statistical discrepancies of trade in services. On the base of deepening the existing research topics, both sides jointly agreed to launch the research on statistical discrepancies of U.S. foreign direct investment in China. Further, experts from both countries discussed national accounting methods, including GDP, new economy statistics, balance sheets, and supply use tables. Both sides agreed to cooperate on the 4 key areas above and draft a 2017 work plan by the end of this year. Both sides also agreed to draft a research report on statistical discrepancies of merchandise trade and a research report on statistical discrepancies of China’s foreign direct investment in the United States, and submit them to the 28th Joint Commission on Commerce and Trade.</p>
<h3>WINE CERTIFICATION</h3>
<p>China supports the efforts made by the United States to promote wine trade and a uniform certificate for the APEC region on APEC Wine Regulatory Forum. China is open to further exchange and communication with the United States to promote the healthy development of wine trade and the wine industry. <br />
</p>
<h2><strong>STRATEGIC SESSION</strong></h2>
<p>The 2016 JCCT included a Strategic Session that convened U.S. and Chinese government officials and experts to discuss “Digital Trade: Delivering Broad Based Growth through the Digital Economy.” The Session’s main objective was to highlight the contribution to global economic growth that can be realized by empowering digital industries. Two U.S. and two Chinese experts shared their insights on topics regarding the digital economy in China and United States and offered suggestions to both governments. After hearing from the experts, senior U.S. and Chinese Government officials engaged in a productive, in-depth discussion of these issues including suggestions for future possible government and private sector initiatives. <br />
</p>
<h2><strong>COLLABORATIVE EVENTS</strong></h2>
<p>The 2016 JCCT featured a series of collaborative events that facilitated private sector engagement with public and private sector officials from both the United States and China. These events focused on important topics, including digital trade and food safety, and also included a roundtable of business leaders.</p>
<p>At the digital trade event, Secretary Pritzker, Ambassador Froman and Vice Premier Wang delivered opening remarks. In addition, two expert panels from U.S. and Chinese industry discussed opportunities in the burgeoning digital trade economy, the enabling environment necessary for digital advancements, and standards development for digital technologies. </p>
<p>The food safety event focused on food safety and was co-sponsored by the U.S.-China Business Council and the China Council for the Promotion of International Trade, in coordination with the U.S.-China Agriculture and Food Partnership. Building upon similar industry events held at the 2014 and 2015 JCCTs, this year’s engagement highlighted the cooperation between government and industry on advancing mutual food safety goals, demonstrating the value of public-private dialogue and partnerships in food safety and their importance to human health as well as global trade. The event included important topics such as strengthening consumer protection and enhancing public confidence in the food chain, transparency and food safety regulation implementation, plus best practices in preventing and responding to food safety incidents.</p>
<p>The business roundtable event brought together U.S. and Chinese business leaders and U.S. and Chinese government officials to discuss corporate evolution in a rapidly changing global environment. The participants addressed the necessity and benefit of corporate evolution including responses to the challenges of new technology, compliance with national laws when entering or exiting a market, and structuring enterprises for success. The participants also discussed the appropriate role of government in facilitating industry adaptation. </p>
Mon, 28 Nov 2016 10:36:51 -0500abowman@doc.govhttps://www.commerce.gov/news/fact-sheets/2016/11/us-fact-sheet-27th-us-china-joint-commission-commerce-and-tradeU.S. and Chinese Delegations Conclude the 27th Session of the U.S.-China Joint Commission on Commerce and Trade https://www.commerce.gov/news/press-releases/2016/11/us-and-chinese-delegations-conclude-27th-session-us-china-joint
<p>U.S. Secretary of Commerce Penny Pritzker and U.S. Trade Representative Michael Froman today led a U.S. delegation in discussions with Vice Premier Wang Yang and other Chinese government officials as part of the 27th session of the U.S.-China Joint Commission on Commerce and Trade (JCCT) in Washington. U.S. Secretary of Agriculture Tom Vilsack and U.S. Ambassador to China Max Baucus also participated in this year’s JCCT, the last of the Obama Administration. At the conclusion of the discussions, the United States announced key outcomes in the areas of intellectual property protection, pharmaceutical and medical devices, and information security policies.</p>
<p><em>Specific outcomes of today’s meetings are described below. For further information on outcomes from the meetings, click <a href="//www.commerce.gov/news/fact-sheets/2016/11/us-fact-sheet-27th-us-china-joint-commission-commerce-and-trade">here</a>.</em></p>
<p>“The role of the JCCT is to expand the U.S.-China economic relationship by addressing commercial challenges head on and producing concrete results for both our countries. While we have had a productive day, significant challenges remain in our relationship, and we must redouble our commitment to addressing them,” said Secretary Penny Pritzker. “As the two largest economies and the two largest markets in the world, constructive engagement and sustained diplomacy between the United States and China are critical to making progress on the issues that remain in our relationship. That is what the JCCT is all about."</p>
<p>“Over the years, JCCT has provided a vital platform to discuss the trade and investment issues that shape the U.S.-China economic relationship. This year’s JCCT produced progress on a number of issues facing American workers and businesses, but challenging issues in our bilateral economic relationship remain,”said Ambassador Froman.“What we know is that American workers and businesses are willing to compete with their counterparts in China, but expect to do so on a level playing field. As we conclude the final JCCT under President Obama’s leadership, we are hopeful the JCCT will continue to be an effective forum for sustained and meaningful engagement in the years to come.”</p>
<p>“While the agricultural outcomes of this week’s JCCT did not go as far as the United States had hoped, I remain optimistic that, in the final weeks of this Administration, we can still make additional progress on priority issues including biotechnology approvals and market access for U.S. beef,” said Secretary Tom Vilsack. “I urge both sides to reengage as soon as possible so that we can fulfill this expectation and complete work before the end of the year and the start of the new administration."<br />
<br />
Established in 1983, the JCCT is the primary forum for addressing bilateral trade and investment issues and promoting commercial opportunities between the United States and China. The 2015 JCCT meeting was held in Guangzhou, China.<br />
<br />
Building upon the increased size and scope of the U.S.-China commercial relationship, the JCCT was reinvigorated in 2014 to include a full day of collaborative programing designed to facilitate private sector engagement with officials from the United States and China, as well as to promote the exchange of information on trade opportunities at the state, provincial, and local levels.<br />
<br />
This year’s private sector engagements included a celebratory dinner hosted by the U.S. Chamber of Commerce and the US-China Business Council, as well as roundtable discussions on corporate restructuring, agriculture and food safety, and the digital economy.<br />
<br /><strong>Overview of JCCT Outcomes</strong><br />
<br />
Through sustained engagement during the course of this past year, the United States and China have reached agreement in several areas of key importance to U.S. farmers, innovators, manufacturers, workers and consumers, including in the following areas:<br />
<br /><em>Implementation</em>: The United States and China agree on the importance of the full implementation of past JCCT outcomes to secure meaningful benefits for our workers and businesses. China agreed to build upon the 2011 commitment of President Hu Jintao to President Obama to delink Chinese indigenous innovation policies from government procurement preferences, and China’s 2011 JCCT and S&amp;ED commitments to eliminate catalogues or measures with such links.<br />
<br /><em>Medical Devices and Pharmaceuticals</em>: China committed to strengthen oversight of government procurement of medical devices to ensure foreign brands and foreign-manufactured products are treated in a transparent, fair, and equitable manner, and to not link procurement to policies promoting domestically produced medical devices. China also affirmed that drug registration review and approval shall not be linked to pricing commitments and shall not require specific pricing information.</p>
<p><em>Intellectual Property Rights Protection and Enforcement</em>: China agreed to a number of IPR-related commitments that will facilitate much needed improvements for a wide range of industries that rely on the ability to protect and enforce their IPR in China. China affirmed that it is strengthening its trade secrets protections and prioritizing enforcement against online IPR counterfeiting and piracy. Both countries recognize the important role of online platforms in developing innovative new ways to deliver safe, reliable, and legitimate products in convenient and affordable ways.</p>
<p><em>Excess Capacity</em>: Building on Presidential commitments made earlier this year, the U.S. and China agreed to jointly promote the expeditious establishment of the Global Forum on Steel Excess Capacity. In addition, the United States and China recognized the G20 Leaders’ commitment to take effective steps to address the challenges of global excess capacity. Both sides have agreed to exchange information on soda ash and to address global electrolytic aluminum excess capacity.</p>
<p><em>Innovation</em>: This year’s JCCT provided an opportunity for the U.S. and China to build upon commitments made by Presidents Obama and Xi in September that innovation policies should be consistent with the principle of nondiscrimination. China confirmed that its “secure and controllable” policies will not limit sales opportunities for foreign companies or impose nationality-based restrictions, and will be notified to the WTO Technical Barriers to Trade Committee.</p>
<p><em>Semiconductors</em>: China and the United States jointly reaffirm their commitment to a strong, vibrant global semiconductor industry that operates in fair, open and transparent legal and regulatory environments. China reaffirms that operation of the integrated circuit investment funds will be based on market principles and that the government will not interfere with the normal operation of the funds.</p>
Wed, 23 Nov 2016 20:38:12 -0500kcpullen@doc.govhttps://www.commerce.gov/news/press-releases/2016/11/us-and-chinese-delegations-conclude-27th-session-us-china-joint U.S. Secretary of Commerce Penny Pritzker Delivers Remarks at the Conclusion of the U.S.-China Joint Commission on Commerce and Trade (JCCT) https://www.commerce.gov/news/secretary-speeches/2016/11/us-secretary-commerce-penny-pritzker-delivers-remarks-conclusion-us
<p> Today, U.S. Secretary of Commerce Penny Pritzker delivered remarks during a joint press conference with U.S. Trade Representative Michael Froman at the conclusion of 27th meeting of the U.S.-China Joint Commission on Commerce and Trade (JCCT). During her remarks, Secretary Pritzker highlighted progress made in the areas of pharmaceutical and medical device market access and the future of the semiconductor industry. She also spoke about remaining issues with respect to technology and innovation policy, as well as China’s excess capacity in multiple sectors.</p>
<p>Secretary Pritzker highlighted the two countries’ progress in promoting bilateral trade and commerce through the JCCT, but noted significant challenges remain in the bilateral relationship. The Secretary encouraged China to further reform, rebalance, and open its economy to achieve its declared ambition of letting market force play a “decisive role” in its economy. In closing, Secretary Pritzker affirmed that constructive engagement and sustained diplomacy between the U.S. and China are critical to making progress on the issues that remain in our relationship.</p>
<p><strong>Remarks as Prepared for Delivery</strong></p>
<p>Good afternoon, and thank you for joining us as we conclude the 27<sup>th</sup> meeting of the U.S.-China Joint Commission on Trade and Commerce. I would like to thank Vice Premier Wang Yang and his team for traveling halfway around the world to meet with us this week. I also want to recognize Ambassador Froman, Ambassador Baucus, and Secretary Vilsack for their work – and the work of their teams – to make this dialogue a success.</p>
<p>When the Vice Premier, Ambassador Froman, and I began the process of “reimagining” the JCCT during a tea break in Beijing, we committed to building a more dynamic and effective economic dialogue between the United States and China – a commercial relationship that is critical not only to our own countries but to global economic growth and stability.</p>
<p>Our two markets are the largest on the planet. Together, our populations total more than 1.7 billion people – just shy of a quarter of the planet. And combined U.S. and China trade in goods and services add up to about one-fifth of all international trade.</p>
<p>The role of the JCCT is to expand this relationship by addressing commercial challenges head on and producing concrete results for both our countries.</p>
<p>Before today’s talks commenced, we had already made progress on cooperation in economic statistics reporting and issues related to WTO-mandated transparency procedures. In our government-to-government meetings today, among other issues, we focused on pharmaceutical and medical device market access, the future of the semiconductor industry, technology and innovation policy, and China’s excess capacity challenges in multiple sectors.</p>
<p>On pharmaceutical and medical device market access, we made progress on two of U.S. industry’s top priority issues. China committed to treating both domestic and foreign medical devices the same in regards to procurement, which will level the playing field for American companies who sell their products to China. China also affirmed that drug registration review and approval will not be linked to pricing commitments and will not require specific pricing information.</p>
<p>On semiconductors, we were pleased that China confirmed that its government has not asked their semiconductor investment funds to require technology transfer in order to participate in their projects. While far from resolving our concerns about China's semiconductor development program, we hope that the incremental progress we made today will lead to future actions to address our companies' concerns. </p>
<p>While we have had a productive day, significant challenges in our relationship remain. We continue to have fundamentally different views on the appropriate role of the state in the economy. For example, in regards to technology and innovation policy, we continue to have serious concerns about China's pursuit of policies that support indigenous innovation and require data localization. American companies continue to confront challenges related to intellectual property rights and trade secret theft in the Chinese market, though we recognize that China is working hard on this issue.</p>
<p>We also remain deeply concerned about excess capacity, particularly in steel and aluminum. We recognize that China faces challenges of its own in addressing this issue. But the responsible parties must meet to develop both short-term improvements and long-term solutions. In addition, despite progress on the semiconductor issue, we remain concerned that state-driven and financed investment will create market distortions in China and around the world. These distortions not only threaten long-term innovation in this critical sector but will hurt U.S. firms and workers and further undermine support for open trade and investment.</p>
<p>Looking at these and other challenges more broadly, it is clear that China has a long way to go towards achieving its declared ambitions, including letting market forces play a “decisive role” in its economy.</p>
<p>As the two largest economies and the two largest markets in the world, constructive engagement and sustained diplomacy between the United States and China are critical to making progress on the issues that remain in our relationship. Although this is my last time serving as co-chair, I want to emphasize that this dialogue has been and will remain the essential forum for promoting more commerce; for deepening trust; and for addressing real business challenges.</p>
<p>Now and into the future, the JCCT is an opportunity for us to build a legacy of cooperation, respect, and stronger U.S.-China economic ties. Thank you, and have a happy Thanksgiving.</p>
Wed, 23 Nov 2016 14:15:07 -0500llarrimore@doc.govhttps://www.commerce.gov/news/secretary-speeches/2016/11/us-secretary-commerce-penny-pritzker-delivers-remarks-conclusion-usOp-Ed: Launching the Next Generation of Weather Satelliteshttps://www.commerce.gov/news/opinion-editorials/2016/11/op-ed-launching-next-generation-weather-satellites
<p>Four years ago this month, America’s eastern seaboard began the long and difficult process of rebuilding in the wake of Hurricane Sandy’s destruction, the second-costliest weather disaster in American history. Since then, extreme weather events have continued to claim lives, devastate our communities and negatively affect our economy.</p>
<p>In 2016 alone, we have seen a tornado outbreak tear through the Ohio Valley, floods ravage parts of Texas and southern Louisiana, wildfires scorch areas of California, and Hurricane Matthew bring a deluge of heavy rain and flooding to the Southeast coast. As of September, the National Oceanic and Atmospheric Administration (NOAA) identified 12 separate weather and climate disaster events just this year with losses exceeding $1 billion across the United States.</p>
<p>As the Secretary of Commerce, I am fortunate to lead NOAA, home to some of the world’s foremost authorities on climate science. We know from their work that our climate is changing, from the top of the atmosphere to the depths of the oceans. And we know that change is caused primarily by the burning of fossil fuels.</p>
<p>There is no doubt the world must take steps now to reduce carbon dioxide emissions. But while we tackle the broader challenge of slowing our changing climate, we must all take innovative, scientific steps to prepare for a world in which environmental disasters are increasingly common.</p>
<p>Last week, a new U.S. weather satellite, GOES-R, will launch into space. Like NOAA’s other satellites, it will provide the National Weather Service will critical oceanic and atmospheric data needed to identify severe weather threats and issue lifesaving forecasts – but GOES-R is a true game changer.</p>
<p>The new satellite will deliver vivid images of severe weather as often as every 30 seconds, scanning the Earth five times faster, with four times greater image resolution and using triple the number of spectral channels than other GOES spacecraft. GOES-R is the meteorological equivalent of taking our satellite technology from black and white to ultra-high-definition color TV.</p>
<p>So how does this prepare us for the most extreme weather?</p>
<p>Fixed in geostationary orbit above North America, GOES-R will improve hurricane tracking forecasts and increase thunderstorm and tornado warning lead time. It will improve aviation flight route planning for our pilots, enhance space weather monitoring for our scientists and provide information about the long-term health of our planet. Simply put, GOES-R will lead to more accurate and reliable weather forecasts and severe weather outlooks.</p>
<p>We are entering a new era in which environmental information increasingly underpins the decisions made by businesses, consumers, and even financiers. Accurate weather forecasts, climate predictions, and water data help customers reduce costs and companies increase profits. For example, insurance companies can use weather data to send micro-targeted text message warnings to customers living in the areas that will be hit hardest by storms – helping protect families as well as their cars and homes while saving the company from costly claims.</p>
<p>Across the country, companies and communities are using NOAA’s climate data every day. Our retailers are relying on hourly and weekly forecasts to keep cargo and transportation operations running smoothly. Air carriers are transmitting real-time wind and atmospheric data to pilots that help them avoid turbulence and keep passengers safe. And energy companies are using seasonal predictions to more precisely deliver electricity and gas, and upgrade vulnerable infrastructure that could disrupt power.</p>
<p>In this era when extreme weather events are becoming more and more frequent, weather data are more than obscure numbers on a computer screen. Deployed effectively, good data can save lives, make communities more resilient, inform business decisions and form the seeds of economic growth. When GOES-R was launched from Cape Canaveral last week, we entered a new era of weather data that will help every community from coast to coast become more environmentally and economically resilient.</p>
Wed, 23 Nov 2016 12:34:01 -0500llarrimore@doc.govhttps://www.commerce.gov/news/opinion-editorials/2016/11/op-ed-launching-next-generation-weather-satellitesU.S. Secretary of Commerce Penny Pritzker Urges U.S.-China Joint Commission on Commerce and Trade (JCCT) Participants to Address Policy Challenges https://www.commerce.gov/news/secretary-speeches/2016/11/us-secretary-commerce-penny-pritzker-urges-us-china-joint-commission
<p>Today, U.S. Secretary of Commerce Penny Pritzker delivered remarks at the opening plenary session of the 27th meeting of the U.S.-China Joint Commission on Commerce and Trade (JCCT). During her remarks, Secretary Pritzker highlighted the two countries’ progress in promoting bilateral trade and commerce through the JCCT, as well as lingering policy challenges that remain in our bilateral relationship.<br />
<br />
Secretary Pritzker encouraged China to further reform, rebalance, and open its economy by addressing intellectual property protections, decreasing excess capacity, and promoting an open, vibrant digital economy. To conclude, the Secretary urged JCCT participants to address these policy challenges head-on and produce concrete results that benefit both the U.S. and China.</p>
<p><strong><em>Remarks as Prepared for Delivery</em></strong></p>
<p>Good morning. On behalf of President Obama and the U.S. government, it is my pleasure to welcome Vice Premier Wang and the entire Chinese delegation to Washington for the 27th session of the U.S.-China Joint Commission on Commerce and Trade.</p>
<p>Three years ago, during a tea break at the 2013 JCCT in Beijing, Vice Premier Wang, Ambassador Froman, and I had the radical idea of “reimagining” how the JCCT works.</p>
<p>Today, this dialogue remains a platform to discuss major economic, commercial, and trade issues between our two governments. But we have added two new dimensions that have transformed the JCCT.</p>
<p>First, we now hear directly from our respective business communities about how we can strengthen our business climates. Second, during the dialogue, we host events that foster greater communication and promote growth opportunities between U.S. and Chinese business leaders.</p>
<p>Each year, we have focused on areas ripe for collaboration. At the 2014 JCCT in Chicago, our governments and our private sectors discussed new opportunities to grow our travel and tourism sectors. That event sparked the creation of the U.S.-China Year of Tourism, which on Sunday, Vice Premier Wang Yang and I celebrated together during a beautiful ceremony at the Warner Theater.</p>
<p>At the 2015 JCCT in Guangzhou, our discussions centered on healthcare. That event sparked our government to send a trade mission of 12 healthcare companies to Beijing and Chongqing last month, led by Deputy Commerce Secretary Andrews and his counterpart at the Department of Health and Human Services.</p>
<p>Mr. Vice Premier, Ambassador Froman: I think it is fair to say that – through the JCCT – we have made progress in promoting more trade and commerce between our nations. Yet, policy challenges remain in our relationship.</p>
<p>The U.S. private sector has seen strong results from their businesses in China, but significant growing headwinds are hampering continued growth. Our companies and your companies need to see China further reform, rebalance, and open your economy – including by addressing intellectual property protections, decreasing excess capacity, and advancing policies that promote an open, vibrant digital economy.</p>
<p>Our task today is to address some of these challenges head on and produce concrete results that benefit both of our countries. Over the course of our discussions today, I hope we can demonstrate our two governments’ ability to solve problems together.</p>
<p>I look forward to a fruitful day. Thank you.</p>
Wed, 23 Nov 2016 09:31:29 -0500kcpullen@doc.govhttps://www.commerce.gov/news/secretary-speeches/2016/11/us-secretary-commerce-penny-pritzker-urges-us-china-joint-commissionU.S. Secretary of Commerce Penny Pritzker Delivers Keynote Address on Digital Privacy and Security at Council on Foreign Relations https://www.commerce.gov/news/secretary-speeches/2016/11/us-secretary-commerce-penny-pritzker-delivers-keynote-address
<p>Today, U.S. Secretary of Commerce Penny Pritzker delivered a keynote address at an event hosted by the Council on Foreign Relations on Privacy and Data in the Age of Surveillance. This symposium convened policymakers, business leaders, and academic experts for a candid discussion of online privacy in an era of fast-moving digital innovation.</p>
<p>During her remarks, Secretary Pritzker emphasized that trust in the privacy and security of digital technologies is essential to America’s future competitiveness in the global economy. The Secretary discussed how collaboration between government and industry stakeholders has guided the Commerce Department’s first-ever digital economy agenda, which aims to advance policies that <a href="//www.commerce.gov/news/opinion-editorials/2016/09/op-ed-icann-transition-protects-internet-freedom">promote a free and open Internet</a>, <a href="//www.commerce.gov/news/secretary-speeches/2016/07/remarks-us-secretary-commerce-penny-pritzker-eu-us-privacy-shield">protect security and privacy</a>, <a href="//www.commerce.gov/news/blog/2016/10/secretary-pritzker-celebrates-manufacturing-day-portland">build a workforce</a> prepared for the 21st century, and <a href="//www.commerce.gov/news/blog/2016/10/secretary-pritzker-discusses-digital-economy-and-democratization-data-next-economy">engage with industry</a> on emerging technologies. </p>
<p>Secretary Pritzker highlighted several successful efforts undertaken by the Commerce Department, such as the recent completion of the EU-U.S. Privacy Shield Framework, which supports digital trade in the transatlantic economy, and the Cybersecurity Framework, a tool created by NIST in consultation with over 3,000 industry stakeholders designed to help businesses and agencies improve their cybersecurity posture. Looking ahead, Secretary Pritzker discussed the Commerce Department’s role in supporting the <a href="https://www.whitehouse.gov/blog/2016/04/13/announcing-presidents-commission-enhancing-national-cybersecurity">Commission on Enhancing National Cybersecurity</a>, which is slated to issue recommendations on how government and industry can secure our nation’s vast digital assets and promote the trust essential to our continued success in the digital economy. </p>
<p><em>Remarks as Prepared for Delivery</em></p>
<p>Thank you, Richard, for that warm welcome. It’s a pleasure to be here at the Council on Foreign Relations. Today’s discussion of privacy and security has never been more important. </p>
<p>To address these challenges, restore trust, and maintain American leadership in online innovation, our team developed our first-ever digital economy agenda, with four key priorities: promoting a free and open Internet; protecting digital security and privacy; building a workforce prepared for the 21st century; and engaging with industry on emerging technologies.</p>
<p>In recent months, we have witnessed a denial-of-service attack bring down Twitter and other websites by turning household objects into cyber-weapons, hacked emails drive the news cycle, and foreign influence in our democratic process.</p>
<p>These events suggest we have arrived at a serious point of inflection. Innovation and technology adoption are outpacing our ability to ensure privacy and security – and undermining our ability to realize the digital economy’s full potential.</p>
<p>Today, digitization is transforming every sector – from health care to energy to manufacturing. Companies now have powerful tools to analyze and apply data in ways that hold enormous progress for our world.</p>
<p>Let me give you an example. Last April in Hamburg, I learned how Germany has used big data to cope with the refugee crisis. These refugees speak 25 different languages. But thanks to automated translation services, German health workers were able to screen thousands of displaced families in-real time. This technology has helped Germany protect public health and move thousands of refugees through the migration process more efficiently. </p>
<p>This is just one of countless ways that big data can improve people’s lives. Think about how it could help reduce road congestion and prevent traffic fatalities. Or advance precision medicine. Or prevent retail fraud.But one thing is clear. We will not deliver on the promise of these innovations unless people can trust that their privacy and security will be protected online.</p>
<p>We now have a daily drumbeat of cyber threats and data breaches headlining the news. To better understand the economic impact of these challenges, earlier this year the National Telecommunications and Information Administration surveyed 41,000 Internet-connected households across America. They found that nearly 45 percent of respondents said that concerns over privacy have discouraged them using certain online services. These results drive home how violations of privacy and security have a chilling effect on the adoption of new technology.</p>
<p>Throughout my time as Secretary of Commerce, our team has made these issues of trust and privacy top priorities. When I took this job, President Obama asked me to build bridges with the business community at a time when relations were frayed by the Snowden disclosures. Those revelations spurred more than debates over civil liberties. They undermined the ability of our businesses to compete worldwide. Nations began to erect new digital walls. Data localization laws, content controls, and onerous technical standards threatened market access. Some of these policies were well-intentioned. However, more often than not, they limited consumer choice, undermined competition, and stifled innovation.</p>
<p>Trust is a key pillar of this agenda. And our team has made some significant strides in this area - strides that are delivering real benefits to our economy. Take for instance when our data privacy agreement with Europe, then known as the Safe Harbor, was struck down by European courts. This posed significant challenges to U.S. companies, who struggled to comply with often incompatible privacy rules.</p>
<p>For two years, we negotiated with our counterparts in the European Commission. And this summer we successfully secured the EU-U.S. Privacy Shield Framework. This agreement bridges the gaps between European and U.S. legal constructs for privacy – creating certainty for companies and protecting privacy for consumers on both sides of the Atlantic. The Framework ultimately supports $290 billion in digital serves traded annually between the U.S. and Europe – and paves the way for future growth.</p>
<p>These issues of privacy and security are complex, and we need business at the table to address them. That is why at the Commerce Department, close cooperation with industry has guided our agenda at every turn.</p>
<p>At the National Institute for Standards and Technology, for instance, we convened over 3,000 industry leaders and technical experts to create the Cybersecurity Framework – a dynamic tool now widely-viewed by industry and government to be the gold standard for measuring cyber risk. At our National Telecommunications and Information Administration, our team is actively engaging experts in emerging sectors like the Internet of Things, so that the cars, baby monitors, and devices of the future are born secure. And earlier this year, the President tasked the Commerce Department with providing support to the Commission on Enhancing National Cybersecurity, comprised of 12 public and private sector leaders.</p>
<p>The Commission is expected to report to the President on December 1st. We expect their recommendations to provide the next Administration with a blueprint for better securing our government and our digital economy at large from cyber threats.</p>
<p>The Obama Administration has also made significant progress on restoring trust both at home and abroad by reforming surveillance rules and passing the USA Freedom Act. I am proud of our Administration’s leadership on all of these fronts.</p>
<p>Still, significant unfinished business remains. For example, we currently have a system of sector-specific privacy laws, with broad enforcement authority for the FTC to police the privacy practices of companies and protect consumers. And recently, the FCC entered the privacy enforcement space.</p>
<p>As innovation moves faster than our ability to regulate or legislate, we must consider whether we need new ways to protect privacy in a future headed towards artificial intelligence, machine learning, virtual reality, and other technologies from the sci-fi films of my youth.</p>
<p>Another difficult issue to address is encryption. We all know that encryption is essential for protecting data – for industry, for consumers, for our government and for our military. In fact, President Obama has said, and I quote, “there’s no scenario in which we don’t want really strong encryption.”</p>
<p>However, we increasingly have digital services that impede law enforcement’s ability – with a warrant – to do its job. We must continue to take a clear-eyed approach to this issue that fully appreciates its “security versus security” implications.</p>
<p>In other words, we must strive to ensure any changes in our encryption policies do not jeopardize our national security or undermine our ability to compete globally. And yet we cannot compromise our safety by leaving law enforcement blind. I fundamentally believe that collaboration with industry is essential if we are to make any progress on this challenge.</p>
<p>Privacy and security are values that run deep among all Americans. At the same time, we are an innovative society that has always embraced new technology. Digitization, automation, and data optimization have the potential to deliver benefits to our world like never before. How we empower our businesses, our communities, and our people to realize the promise of this new digital age – while protecting the privacy and security essential for their success – is a central question of our time.</p>
<p>This question will confront the next Administration on day one – and all of us for years to come. Thank you, and I look forward to today’s conversation.</p>
Tue, 22 Nov 2016 17:31:27 -0500kcpullen@doc.govhttps://www.commerce.gov/news/secretary-speeches/2016/11/us-secretary-commerce-penny-pritzker-delivers-keynote-addressU.S. Secretary of Commerce Penny Pritzker Calls for U.S.-China Collaboration to Build Robust, Open Digital Economy https://www.commerce.gov/news/secretary-speeches/2016/11/us-secretary-commerce-penny-pritzker-calls-us-china-collaboration
<p>Today, U.S. Secretary of Commerce Penny Pritzker delivered remarks at the U.S.-China Joint Commission on Commerce and Trade (JCCT) Collaborative Program on the Digital Economy. As part of the “Reimagined JCCT,” this event brought the U.S. and Chinese business communities together with government officials from both countries for a discussion on a topic that is ripe for collaboration. </p>
<p>Secretary Pritzker’s remarks focused on the need for the public and private sectors to work together to protect and promote the Internet as a platform for innovation, commerce, and economic opportunity. She focused specifically on engagement with the business community that is already taking place in two specific areas: the Internet of Things and technology standards. </p>
<p>In closing, she asked participants in the discussion to be ambitious and far-reaching in their ideas for how the U.S. and China can build a modern economy that is open, innovative, and global. </p>
<p><strong><em>Remarks as Prepared for Delivery</em></strong></p>
<p>Good morning, and welcome to the Department of Commerce. Three years ago, during a tea break at the 2013 JCCT in Beijing, Vice Premier Wang, Ambassador Froman, and I had the radical idea of “reimagining” how the JCCT works.</p>
<p>Today, this 33-year-old dialogue remains a platform to discuss major economic, commercial, and trade issues between our two governments. But we have added two new dimensions that have transformed the JCCT.</p>
<p>First, we now hear directly from our respective business communities about how we can strengthen our business climates.</p>
<p>Second, during the dialogue, we host events that foster greater communication and promote growth opportunities between U.S. and Chinese business leaders.</p>
<p>Each year, we have focused on areas ripe for collaboration. In 2014, we chose travel and tourism. In 2015, we picked healthcare. This year, we are discussing the growing digital economy.</p>
<p>In many respects, the digital economy is the global economy.</p>
<p>A decade ago, less than a fifth of the global population had Internet access. Today, nearly 3.5 billion people are online. And by the end of the decade, five billion people will be connected. Companies like GE and Ford see themselves as software companies, not just traditional manufacturers. And small businesses use the Internet to access new customers and ship their products all over the globe. Digital technologies have quickly become a driving force of global economic competitiveness, entrepreneurship, and innovation in the 21st century.</p>
<p>At the same time, we must acknowledge that new technologies bring new challenges – for businesses, for governments, and for ALL our peoples. In the United States, we have seen that the free and open Internet – which provides access to information and enables innovation – is essential if our people are to compete and succeed.</p>
<p>One of the big questions facing every policymaker around the world right now is how do we ensure that innovation remains a key driver of human progress and the lifeblood of the global economy? What we know for sure is that any answer requires a free and open Internet.</p>
<p>As the world’s largest economies, the policies we set in the United States and China will have an enormous impact not only on our own peoples but on economic growth all around the world. To get these policies right, we must work together – across the public and private sectors – to not only protect but promote the Internet as a platform for innovation, commerce, and economic opportunity.</p>
<p>Here at the Department of Commerce, we have engaged heavily with the private sector in both of the areas we are discussing this morning: the Internet of Things, and technology standards.</p>
<p>First, the Internet of Things is revolutionizing the way we live – from improving healthcare and reducing highway fatalities to reducing home energy consumption and making industrial processes more efficient. But these emerging technologies also present new and evolving challenges that we need to tackle, such as providing spectrum and protecting privacy and security.</p>
<p>The Department of Commerce has made headway in tackling these challenges by engaging the business community and other stakeholders. We have found that their collaboration is essential.</p>
<p>In the coming months, we plan to release a paper outlining areas where the Department of Commerce can partner with the private sector to foster the advancement of Internet of Things technology. This report was drafted in close consultation with the business community and academia, including through requests for comment and a public workshop. We also recently launched a multistakeholder process to ensure that IoT devices can receive security upgrades.</p>
<p>Second, technology standards play an essential role in enabling new technology to be deployed more rapidly. At the National Institute of Standards and Technology, our approach to developing these standards is both private sector led and industry driven. For example, NIST engaged with more than 3,000 people from across industry, academia, and government to develop a Cybersecurity Framework, which today is the common language that businesses use when assessing cybersecurity risk management. This type of collaboration between the public and private sectors is only more essential as technology continues to transform the way both our economy and our world at large function.</p>
<p>If the United States and China can work together to find solutions to policy challenges, we will create more jobs and promote new life-changing innovations. </p>
<p>Today, I challenge this group to identify opportunities for U.S.-China collaboration to build a modern economy that is open, innovative, and global. I encourage you to be ambitious and far-reaching in your discussions.</p>
<p>Thank you for being here today, and for your meaningful contribution to this important bilateral relationship.</p>
Tue, 22 Nov 2016 13:36:06 -0500kcpullen@doc.govhttps://www.commerce.gov/news/secretary-speeches/2016/11/us-secretary-commerce-penny-pritzker-calls-us-china-collaborationU.S. Secretary of Commerce Penny Pritzker Delivers Remarks at U.S.-China Tourism Year Closing Eventhttps://www.commerce.gov/news/secretary-speeches/2016/11/us-secretary-commerce-penny-pritzker-delivers-remarks-us-china
<p>On Sunday, U.S. Secretary of Commerce Penny Pritzker delivered remarks at the Warner Theater to celebrate the conclusion of the 2016 U.S.-China Tourism Year. U.S. and Chinese leaders designated 2016 as the U.S.-China Tourism Year in an effort to strengthen tourism and commercial ties between the two countries. In the U.S., government and industry worked together to enhance the tourism experience for Chinese visitors and improve cultural understanding.</p>
<p>In her remarks, Secretary Pritzker emphasized China’s remarkable growth into one of the world’s top tourist destinations since her first visit to the country over 30 years ago. Last year, 2.6 million Chinese visitors visited the United States, up from 400,000 in 2007. However, this represents only two percent of the outbound Chinese market. To help close this gap, President Obama and President Xi agreed to extend the validity of most tourist and business visas from 1 year to 10 years, and student visas from 1 year to 5 years.</p>
<p><strong><em>Remarks as Prepared for Delivery</em></strong></p>
<p>Good evening! I am thrilled to be here at the beautiful Warner Theater to celebrate the finale of the 2016 U.S.-China Tourism Year. On a night like tonight, I can’t help but reflect on my first visit to China, more than 30 years ago. My trip to Beijing and Shanghai in 1984 was truly amazing. I had the opportunity to walk along the Great Wall and take in the historical architecture along the Bund. I particularly loved walking along Wangfujing, seeing so many people on bicycles and talking to vendors along the street. But looking back, what I am most grateful for was the opportunity to see China then, so I could appreciate what it has grown into today. Since that trip, I have had the good fortune of returning to China many times for both business and pleasure. And I have witnessed China’s incredible evolution into one of the most remarkable and popular tourist destinations in the world.</p>
<p>Even as this evolution was taking place in China, travel and tourism between the U.S. and China remained stagnant for decades. That changed in 2007 when our two countries signed a memorandum of understanding allowing packaged leisure travel from China to the United States. That year, approximately 400,000 Chinese travelers visited the United States. Last year, that number had grown to 2.6 million. At the same time, travel to China from the U.S. has also grown significantly – and we have reached our shared goal of 5 million visitors between our countries. Yet, even with this success, there is so much room to grow. The United States only captures two percent of the outbound Chinese market, despite strong demand from the Chinese to visit our shores.</p>
<p>To help close this gap, President Obama and President Xi agreed to extend the validity of most tourist and business visas from 1 year to 10 years, and student visas from 1 year to 5 years. In the first twelve months after this historic announcement, the number of applications by Chinese citizens for visas to the United States increased by 53 percent. But even with this monumental progress, our countries’ leaders knew there was so much more opportunity – so they designated 2016 as the U.S.-China Tourism Year.</p>
<p>Let me just give you a couple examples of why this was such a great decision. In the United States, we have leveraged the Tourism Year to inspire hotels, restaurants, and public and private destinations in every single state and territory to make themselves more attractive and welcoming to Chinese visitors. From the government perspective, we installed Chinese language signage in key airports and developed new travel itineraries in Mandarin for popular destinations like the Grand Canyon. And I am pleased to say that China is moving forward with plans to develop a Chinese national park system and working with the U.S. park service to apply our best practices, models, and lessons learned.</p>
<p>As we close the Tourism Year and look to the future, I want to assure all of you that we will continue to promote more travel and tourism between our nations. Through this the Joint Commission on Commerce and Trade, we will continue to work with industry and our Chinese partners to address market access issues, such as opening the sale of outbound travel in China to U.S. companies and Ensuring the ability of foreign global distribution services platform to operate in China.</p>
<p>But tonight, we celebrate. We celebrate all we have achieved over the past year to bring our peoples closer together. Now, I have the honor to share a message from President Obama…</p>
<p>I am proud to join in celebrating the closing of the 2016 U.S.-China Tourism Year. The U.S.-China Tourism Year has enabled the American and Chinese peoples to experience new cultures, explore new places, and get to know one another. As our two countries continue working together to address global challenges, we reflect on this year as one in which we deepened our people-to-people ties and strengthened one of the largest bilateral trade relationships in the world. A future of peace, prosperity, and friendship depends on our efforts to under each other. That is why the United States will continue to welcome the Chinese people to our shoes – whether to hike through our National Parks, dine in our vibrant cities, or learn more about our rich history – while also encouraging Americans to discover all that china has to offer. Congratulations to all those who worked to make this Tourism Year a success. I am grateful for your efforts and am looking forward to the future of continued cooperation that lies ahead. – President Barack Obama</p>
<p>As someone who has a long history in the hospitality business, it has been an absolute pleasure working with all of you on this endeavor. The travel and tourism relationship between the United States and China has come a long way since my first visit to Beijing more than 30 years ago, and I look forward to seeing where our efforts take us over the next 30 years. Thank you very much.</p>
Mon, 21 Nov 2016 10:57:44 -0500kcpullen@doc.govhttps://www.commerce.gov/news/secretary-speeches/2016/11/us-secretary-commerce-penny-pritzker-delivers-remarks-us-chinaU.S. Commerce Secretary Penny Pritzker Addresses GOES-R Launch Ceremonyhttps://www.commerce.gov/news/secretary-speeches/2016/11/us-commerce-secretary-penny-pritzker-addresses-goes-r-launch
<p>Today, U.S. Secretary of Commerce Penny Pritzker delivered remarks at the <a href="http://links.govdelivery.com:80/track?type=click&amp;enid=ZWFzPTEmbXNpZD0mYXVpZD0mbWFpbGluZ2lkPTIwMTYxMTE4LjY2NTM3OTUxJm1lc3NhZ2VpZD1NREItUFJELUJVTC0yMDE2MTExOC42NjUzNzk1MSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTE2ODcxMjI2JmVtYWlsaWQ9a2NwdWxsZW5AZG9jLmdvdiZ1c2VyaWQ9a2NwdWxsZW5AZG9jLmdvdiZ0YXJnZXRpZD0mZmw9JmV4dHJhPU11bHRpdmFyaWF0ZUlkPSYmJg==&amp;&amp;&amp;100&amp;&amp;&amp;http://www.goes-r.gov/">Geostationary Operational Environmental Satellite-R Series</a> (GOES-R) Launch Ceremony at Cape Canaveral Air Force Station in Florida. The GOES-R is the nation’s next generation of geostationary weather satellites that will significantly improve the critical oceanic and atmospheric data needed to identify severe weather threats and issue lifesaving forecasts.</p>
<p>In her remarks, Secretary Pritzker recognized the hard work that has gone into the satellite and launch efforts of GOES-R. Secretary Pritzker highlighted how good data from the satellite can save lives and inform business decisions for economic growth, touching the lives of all Americans.</p>
<p><strong><em>As Prepared for Delivery</em></strong></p>
<p>Thank you, Dr. Sullivan, for your outstanding leadership. I am thrilled to be here with you this afternoon to witness this historic occasion.</p>
<p>While it will only take two weeks for GOES-R to travel from Cape Canaveral to its new home 22,300 miles above our heads, today’s launch is the culmination of more than a decade of hard work, sacrifice, and ingenuity.</p>
<p>Now, I know I’m the only person speaking today who is not a scientist. So let me skip over the technical details and get right to the heart of what GOES-R means for American businesses, communities, and families.</p>
<p>With GOES-R delivering much sharper images more regularly, forecasters will be able to deliver even more accurate forecasts and warnings. </p>
<p>Consider what this improved accuracy will mean the next time a hurricane bears down on the Space Coast. </p>
<p>If you live down just down the coast in Vero Beach, you will be able to use your phone to track how the storm will specifically affect not just your town but the street where your children are in school. </p>
<p>If you work at an insurance company, you will be able to send micro-targeted text messages warnings to customers living in the areas that will be hit the hardest – protecting not only their lives but their cars and homes while saving the company from costly claims.</p>
<p>And if you are a federal resource coordinator at FEMA, forecasts based on GOES-R data will help you better determine before a storm even makes landfall which blocks will need the most resources. Weather data is more than obscure numbers on a computer screen.</p>
<p>Good data – deployed effectively – can save lives. It can make communities more resilient. It can even inform business decisions.</p>
<p>When GOES-R leaves the Earth this afternoon and flies skyward towards its new home in the cosmos, it begins the next phase of a journey that will touch the lives of each and every American.</p>
<p>I want to congratulate the entire GOES-R team on this extraordinary achievement. Thank you.</p>
Fri, 18 Nov 2016 13:44:39 -0500kcpullen@doc.govhttps://www.commerce.gov/news/secretary-speeches/2016/11/us-commerce-secretary-penny-pritzker-addresses-goes-r-launchU.S. Secretary of Commerce Penny Pritzker Delivers Keynote Address on Digital Privacy and Security at Council on Foreign Relationshttps://www.commerce.gov/news/press-releases/2016/11/us-secretary-commerce-penny-pritzker-delivers-keynote-address-digital
<p>Today, U.S. Secretary of Commerce Penny Pritzker delivered a keynote address at an event hosted by the Council on Foreign Relations on Privacy and Data in the Age of Surveillance. This symposium convened policymakers, business leaders, and academic experts for a candid discussion of online privacy in an era of fast-moving digital innovation.</p>
<p>During her remarks, Secretary Pritzker emphasized that trust in the privacy and security of digital technologies is essential to America’s future competitiveness in the global economy. The Secretary discussed how collaboration between government and industry stakeholders has guided the Commerce Department’s first-ever digital economy agenda, which aims to advance policies that <a href="//www.commerce.gov/news/opinion-editorials/2016/09/op-ed-icann-transition-protects-internet-freedom">promote a free and open Internet</a>, <a href="//www.commerce.gov/news/secretary-speeches/2016/07/remarks-us-secretary-commerce-penny-pritzker-eu-us-privacy-shield">protect security and privacy</a>, <a href="//www.commerce.gov/news/blog/2016/10/secretary-pritzker-celebrates-manufacturing-day-portland">build a workforce</a> prepared for the 21st century, and <a href="//www.commerce.gov/news/blog/2016/10/secretary-pritzker-discusses-digital-economy-and-democratization-data-next-economy">engage with industry</a> on emerging technologies. </p>
<p>Secretary Pritzker highlighted several successful efforts undertaken by the Commerce Department, such as the recent completion of the EU-U.S. Privacy Shield Framework, which supports digital trade in the transatlantic economy, and the Cybersecurity Framework, a tool created by NIST in consultation with over 3,000 industry stakeholders designed to help businesses and agencies improve their cybersecurity posture. Looking ahead, Secretary Pritzker discussed the Commerce Department’s role in supporting the <a href="https://www.whitehouse.gov/blog/2016/04/13/announcing-presidents-commission-enhancing-national-cybersecurity">Commission on Enhancing National Cybersecurity</a>, which is slated to issue recommendations on how government and industry can secure our nation’s vast digital assets and promote the trust essential to our continued success in the digital economy. </p>
<p><a class="button" href="http://www.cfr.org/privacy/conversation-penny-pritzker/p38483">View video of speech on CFR.org</a></p>
<p><strong><em>Remarks as Prepared for Delivery</em></strong></p>
<p>Thank you, Richard, for that warm welcome. It’s a pleasure to be here at the Council on Foreign Relations. Today’s discussion of privacy and security has never been more important. </p>
<p>To address these challenges, restore trust, and maintain American leadership in online innovation, our team developed our first-ever digital economy agenda, with four key priorities: promoting a free and open Internet; protecting digital security and privacy; building a workforce prepared for the 21st century; and engaging with industry on emerging technologies.</p>
<p>In recent months, we have witnessed a denial-of-service attack bring down Twitter and other websites by turning household objects into cyber-weapons, hacked emails drive the news cycle, and foreign influence in our democratic process.</p>
<p>These events suggest we have arrived at a serious point of inflection. Innovation and technology adoption are outpacing our ability to ensure privacy and security – and undermining our ability to realize the digital economy’s full potential.</p>
<p>Today, digitization is transforming every sector – from health care to energy to manufacturing. Companies now have powerful tools to analyze and apply data in ways that hold enormous progress for our world.</p>
<p>Let me give you an example. Last April in Hamburg, I learned how Germany has used big data to cope with the refugee crisis. These refugees speak 25 different languages. But thanks to automated translation services, German health workers were able to screen thousands of displaced families in-real time. This technology has helped Germany protect public health and move thousands of refugees through the migration process more efficiently. </p>
<p>This is just one of countless ways that big data can improve people’s lives. Think about how it could help reduce road congestion and prevent traffic fatalities. Or advance precision medicine. Or prevent retail fraud.But one thing is clear. We will not deliver on the promise of these innovations unless people can trust that their privacy and security will be protected online.</p>
<p>We now have a daily drumbeat of cyber threats and data breaches headlining the news. To better understand the economic impact of these challenges, earlier this year the National Telecommunications and Information Administration surveyed 41,000 Internet-connected households across America. They found that nearly 45 percent of respondents said that concerns over privacy have discouraged them using certain online services. These results drive home how violations of privacy and security have a chilling effect on the adoption of new technology.</p>
<p>Throughout my time as Secretary of Commerce, our team has made these issues of trust and privacy top priorities. When I took this job, President Obama asked me to build bridges with the business community at a time when relations were frayed by the Snowden disclosures. Those revelations spurred more than debates over civil liberties. They undermined the ability of our businesses to compete worldwide. Nations began to erect new digital walls. Data localization laws, content controls, and onerous technical standards threatened market access. Some of these policies were well-intentioned. However, more often than not, they limited consumer choice, undermined competition, and stifled innovation.</p>
<p>Trust is a key pillar of this agenda. And our team has made some significant strides in this area - strides that are delivering real benefits to our economy. Take for instance when our data privacy agreement with Europe, then known as the Safe Harbor, was struck down by European courts. This posed significant challenges to U.S. companies, who struggled to comply with often incompatible privacy rules.</p>
<p>For two years, we negotiated with our counterparts in the European Commission. And this summer we successfully secured the EU-U.S. Privacy Shield Framework. This agreement bridges the gaps between European and U.S. legal constructs for privacy – creating certainty for companies and protecting privacy for consumers on both sides of the Atlantic. The Framework ultimately supports $290 billion in digital serves traded annually between the U.S. and Europe – and paves the way for future growth.</p>
<p>These issues of privacy and security are complex, and we need business at the table to address them. That is why at the Commerce Department, close cooperation with industry has guided our agenda at every turn.</p>
<p>At the National Institute for Standards and Technology, for instance, we convened over 3,000 industry leaders and technical experts to create the Cybersecurity Framework – a dynamic tool now widely-viewed by industry and government to be the gold standard for measuring cyber risk. At our National Telecommunications and Information Administration, our team is actively engaging experts in emerging sectors like the Internet of Things, so that the cars, baby monitors, and devices of the future are born secure. And earlier this year, the President tasked the Commerce Department with providing support to the Commission on Enhancing National Cybersecurity, comprised of 12 public and private sector leaders.</p>
<p>The Commission is expected to report to the President on December 1st. We expect their recommendations to provide the next Administration with a blueprint for better securing our government and our digital economy at large from cyber threats.</p>
<p>The Obama Administration has also made significant progress on restoring trust both at home and abroad by reforming surveillance rules and passing the USA Freedom Act. I am proud of our Administration’s leadership on all of these fronts.</p>
<p>Still, significant unfinished business remains. For example, we currently have a system of sector-specific privacy laws, with broad enforcement authority for the FTC to police the privacy practices of companies and protect consumers. And recently, the FCC entered the privacy enforcement space.</p>
<p>As innovation moves faster than our ability to regulate or legislate, we must consider whether we need new ways to protect privacy in a future headed towards artificial intelligence, machine learning, virtual reality, and other technologies from the sci-fi films of my youth.</p>
<p>Another difficult issue to address is encryption. We all know that encryption is essential for protecting data – for industry, for consumers, for our government and for our military. In fact, President Obama has said, and I quote, “there’s no scenario in which we don’t want really strong encryption.”</p>
<p>However, we increasingly have digital services that impede law enforcement’s ability – with a warrant – to do its job. We must continue to take a clear-eyed approach to this issue that fully appreciates its “security versus security” implications.</p>
<p>In other words, we must strive to ensure any changes in our encryption policies do not jeopardize our national security or undermine our ability to compete globally. And yet we cannot compromise our safety by leaving law enforcement blind. I fundamentally believe that collaboration with industry is essential if we are to make any progress on this challenge.</p>
<p>Privacy and security are values that run deep among all Americans. At the same time, we are an innovative society that has always embraced new technology. Digitization, automation, and data optimization have the potential to deliver benefits to our world like never before. How we empower our businesses, our communities, and our people to realize the promise of this new digital age – while protecting the privacy and security essential for their success – is a central question of our time.</p>
<p>This question will confront the next Administration on day one – and all of us for years to come. Thank you, and I look forward to today’s conversation.</p>
Wed, 16 Nov 2016 16:01:52 -0500abowman@doc.govhttps://www.commerce.gov/news/press-releases/2016/11/us-secretary-commerce-penny-pritzker-delivers-keynote-address-digitalU.S. Department of Commerce Report Shows Business Case for Apprenticeships https://www.commerce.gov/news/press-releases/2016/11/us-department-commerce-report-shows-business-case-apprenticeships
<p>U.S. Secretary of Commerce Penny Pritzker today announced the release of a Department of Commerce report, “The Benefits and Costs of Apprenticeships: A Business Perspective.” This report, authored by the Economics and Statistics Administration in partnership with Case Western Reserve University, is among the first of its kind in the U.S. that captures the employer perspective on the value of the apprenticeship model.</p>
<p>As part of President Obama’s goal of doubling the number of registered apprenticeships in the U.S. by the end of 2018, this report provides companies with hard data and compelling case studies to make the business case for the expansion of apprenticeship models within their own organizations.</p>
<p>“Through our Skills for Business agenda, the Department of Commerce has strongly supported the Obama Administration’s efforts to prepare America’s workers for the in-demand jobs of the 21<sup>st</sup> century. Expanding apprenticeships has been a significant part of our efforts,” said Secretary Pritzker. “This first-of-its kind report clearly demonstrates the value apprenticeships deliver to companies by helping fill jobs left empty, creating a more productive work force, reducing turnover and lowering recruiting costs. The earn-and-learn model is one that we can and should continue to expand across a more diversified set of industries to help meet the challenges faced by America’s workers and employers.” </p>
<p>This report contains findings from 13 case studies of businesses and intermediaries that have experience and success in implementing registered apprenticeships. The programs varied in structure and cost from company to company, but all found that an investment in apprenticeship pays off. </p>
<p><strong>Key Findings Include</strong></p>
<ul>
<li>Across industries from manufacturing to construction, healthcare, retail, and IT, the single most common benefit of apprenticeships was filling jobs that otherwise sat vacant. </li>
<li>Apprenticeships broadened companies’ recruiting pool by opening doors to less-skilled candidates from more diverse backgrounds who would otherwise not be recruited.</li>
<li>Internal production data from two companies helped put a dollar value on some of the benefits:<br />
<ul style="list-style-type:circle">
<li>Dartmouth-Hitchcock Medical Center found that its Medical Assistant apprenticeship program nearly paid for itself within the first year.</p>
<ul>
<li>The program had an internal rate of return of 40 percent compared to using overtime with existing medical staff, and it was essential to a major expansion and re-organization of its provision of medical services. </li>
<li>Reducing the long-term use of overtime also helped relieve staff burnout and turnover, while quality of care remained high after the MA apprentices were introduced.</li>
</ul>
</li>
<li>Siemens USA obtains at least a 50 percent rate of return on its apprenticeship program, compared to hiring machinists off the street.
<ul>
<li>Most of the gains stem from how apprenticeship allows Siemens to more flexibly fill its capacity in Charlotte, NC, which makes generators for electric utilities. Apprentice grads’ flexibility helps the plant make full use of spare capacity, when available, such that the plant can seek and take generator repair work.</li>
<li>Siemens’ apprentice graduates are well suited for tasks like repair work, which involve more judgment than standard projects. One year of this additional capacity is worth an amount similar to the cost of a worker’s apprenticeship program. </li>
<li>Apprentices also were more likely to finish their work on time, and were slightly more productive, compared to machinists hired off the street.</li>
</ul>
</li>
</ul>
</li>
<li>Costs for firms varied widely, from less than $25,000 to $250,000 per apprentice, and benefits were diverse, but the companies studied were unanimous and enthusiastic in finding the benefits to outweigh the costs and their commitments.</li>
<li>Surprisingly few companies calculated an internal return on investment (ROI) for their apprenticeship programs. </li>
<li>Because there is little guidance on how to capture the return on investment and few firms explicitly collect the data to do so, this report provides a roadmap to help employers measure the costs and benefits of apprenticeships. </li>
</ul>
<p>The full report is available here: <a href="http://www.esa.gov/reports/benefits-and-costs-apprenticeships-business-perspective">http://www.esa.gov/reports/benefits-and-costs-apprenticeships-business-perspective</a></p>
Wed, 16 Nov 2016 15:59:08 -0500kcpullen@doc.govhttps://www.commerce.gov/news/press-releases/2016/11/us-department-commerce-report-shows-business-case-apprenticeshipsU.S. Department of Commerce Invests $15 Million in Entrepreneurs Across the Nation to Move Ideas to Market, Promote American Innovationhttps://www.commerce.gov/news/press-releases/2016/11/us-department-commerce-invests-15-million-entrepreneurs-across-nation
<p>U.S. Secretary of Commerce Penny Pritzker today announced 35 organizations — including nonprofits, institutions of higher education, and entrepreneurship-focused organizations — from 19 states will receive nearly $15 million to create and expand cluster-focused, proof-of-concept and commercialization programs, and early-stage seed capital funds through the Economic Development Administration’s (EDA) <a href="https://www.eda.gov/oie/ris/">Regional Innovation Strategies (RIS) program</a>.</p>
<p>The diverse group of awardees, selected from a pool of more than 215 applicants, reach urban and rural areas across the United States, including the program’s first investments in historically black colleges and universities (HBCUs) in the South; a women-focused, early-stage capital fund in Texas; a Native American-centered, proof-of-concept program in Oklahoma; and urban innovation hubs honing in on fashion technology (New York) and social innovation (Louisiana). Additionally, six awards are being made in EDA’s <a href="https://www.eda.gov/imcp/overview/">Investing in Manufacturing Community Partnership</a> regions.</p>
<p>“The RIS program advances innovation and capacity-building activities in regions across the country by addressing two essential core components that entrepreneurs need to take their ideas to market: programmatic support and access to capital,” said Secretary Pritzker. “As America’s Innovation Agency, the Commerce Department has a key role to play in supporting the visionaries and job creators of tomorrow. Congratulations to today’s awardees who will make U.S. communities, businesses, and the workforce more globally competitive.”</p>
<p>The Office of Innovation and Entrepreneurship (OIE), housed within the U.S. Department of Commerce’s Economic Development Administration (EDA), leads the Regional Innovation Strategies Program to spur innovation capacity-building activities in regions across the nation. The program is authorized through the America COMPETES reauthorization Act of 2010, and received a dedicated appropriation for the first time in FY2014.</p>
<p>“The 2016 RIS grantees will reach a variety of communities and help entrepreneurs gain the edge they need to succeed,” said Jay Williams, U.S. Assistant Secretary of Commerce for Economic Development. “The diversity in programs and regional representation proves that innovation and entrepreneurship are igniting all corners of the country and is a recognized tool for economic growth and resilience.”</p>
<p>The RIS grants, broken into two categories — the i6 Challenge and the Seed Fund Support (SFS) Grants — were awarded to:</p>
<p><strong>Seed Fund Support Investments</strong></p>
<ul>
<li><strong>CalCEF Ventures, California Clean Energy Fund, </strong>San Francisco, Calif. – $250,000</li>
</ul>
<ul>
<li><strong>Investor’s Circle, Colorado Seed-Stage Impact Fund</strong><strong>, </strong>Durham, N.C. – $250,000</li>
</ul>
<ul>
<li><strong>Launch New York, Mentorship-Driven Seed Fund</strong><strong>, </strong>Buffalo, N.Y. – $245,460</li>
</ul>
<ul>
<li><strong>Research Park Corporation, Louisiana Deal Flow Accelerator</strong><strong>, </strong>Baton Rouge, La. – $250,000</li>
</ul>
<ul>
<li><strong>Propeller Social Impact Equity Fund</strong><strong>, </strong>New Orleans, La. – $250,000</li>
</ul>
<ul>
<li><strong>Telluride Foundation</strong><strong>, </strong>Telluride, Colo. – $150,000</li>
</ul>
<ul>
<li><strong>University of South Florida, Seed Tampa Bay</strong><strong>, </strong>Tampa, FL - $150,000</li>
</ul>
<ul>
<li><strong>University of Texas, Gender Lens Impact Fund</strong><strong>, </strong>Austin, Texas – $250,000 </li>
</ul>
<p><strong>i6 Challenge Investments</strong></p>
<ul>
<li><strong>AZ Board of Regents, RISN Incubator</strong><strong>, </strong>Tempe, Ariz. - $500,000</li>
</ul>
<ul>
<li><strong>Cal State LA University Auxiliary Services, LABioStart Boot Camp</strong><strong>, </strong>Los Angeles, Calif. - $499,087</li>
</ul>
<ul>
<li><strong>California State University Fresno Foundation, Central Valley Regional Energy Innovation Accelerator,</strong> Fresno, Calif. - $500,000</li>
</ul>
<ul>
<li><strong>Clark Atlanta University, Clark Russell Entrepreneurship and Technology Ecosystem (CREATE), </strong>Atlanta, Ga. - $432,335</li>
</ul>
<ul>
<li><strong>Composite Technology Recycling Center, Recycled Carbon Fiber Innovation Ecosystem Accelerator</strong><strong>, </strong>Port Angeles, Wash. - $500,000</li>
</ul>
<ul>
<li><strong>East Carolina University, Proof-of-Concept Project</strong><strong>, </strong>Greenville, N.C. - $498,443</li>
</ul>
<ul>
<li><strong>First Flight Venture Center, Hanger6, </strong>Durham, N.C. - $441,000</li>
</ul>
<ul>
<li><strong>i2E Inc, Venture Assessment Program</strong><strong>, </strong>Oklahoma City, Okla. - $199,749</li>
</ul>
<ul>
<li><strong>Idea Foundry, Advance Life Sciences Commercialization Project</strong><strong>, </strong>Pittsburgh, Pa. - $500,000</li>
</ul>
<ul>
<li><strong>Lorain County Community College, Northeast Ohio Regional Acceleration in Digital Innovation (NEO ReADI)</strong><strong>, </strong>Elyria, Ohio - $499,999</li>
</ul>
<ul>
<li><strong>Louisiana State University and A&amp;M College, Louisiana State University Industrial Innovation Center (LSU-IIC)</strong><strong>, </strong>Baton Rouge, La. - $498,624</li>
</ul>
<ul>
<li><strong>Metro North Regional Employment Board, Form to Factory Advanced Manufacturing Project</strong><strong>, </strong>Cambridge, Mass. - $500,000</li>
</ul>
<ul>
<li><strong>mHUB, Catalyze Chicago</strong><strong>, </strong>Chicago, Ill. - $500,000</li>
</ul>
<ul>
<li><strong>Mohawk Valley Community College, Upstate Innovation Accelerator</strong><strong>, </strong>Utica, N.Y. - $499,500</li>
</ul>
<ul>
<li><strong>Pratt Institute, Brooklyn Fashion + Design Accelerator</strong><strong>, </strong>Brooklyn, N.Y. - $486,680</li>
</ul>
<ul>
<li><strong>Regents of the University of California, Riverside Proof of Concept Center</strong><strong>, </strong>Riverside, Calif. - $499,950</li>
</ul>
<ul>
<li><strong>Research Foundation for the State University of New York, Regional SBIR/STTR Mentorship Program</strong><strong>, </strong>Stony Brook, N.Y. - $500,000</li>
</ul>
<ul>
<li><strong>Rutgers University, Ecolgnite: Clean Energy Proof of Concept Center and Accelerator Program</strong><strong>, </strong>Piscataway, N.J. - $439,190</li>
</ul>
<ul>
<li><strong>Southern Research Institute, Alliance for Innovative Medical Technology Proof of Concept Center</strong><strong>, </strong>Birmingham, Ala. - $500,000</li>
</ul>
<ul>
<li><strong>StartingBlock Madison</strong><strong>, </strong>Fitchburg, Wis. - $471,875</li>
</ul>
<ul>
<li><strong>University of Georgia Research Foundation, Inc.</strong><strong>, New Materials Innovation Center, </strong>Athens, Ga.- $499,635</li>
</ul>
<ul>
<li><strong>University of Pittsburgh, Manufacturing Accelerator Program</strong><strong>, </strong>Pittsburgh, Pa. - $500,000</li>
</ul>
<ul>
<li><strong>University of Tennessee Health Science Center, The UTHSC Proof of Concept Center</strong><strong>, </strong>Memphis, Tenn. - $499,885</li>
</ul>
<ul>
<li><strong>University of Texas at Austin, Texas Smart Water Innovation Cluster</strong><strong>,</strong> Austin, Texas - $500,000</li>
</ul>
<ul>
<li><strong>University of Texas at San Antonio, The South-Texas Innovation Partnership Program (S-TIPP)</strong><strong>, </strong>San Antonio, Texas - $499,997</li>
</ul>
<ul>
<li><strong>University of Toledo, The University of Toledo Rocket Fuel Fund</strong><strong>, </strong>Toledo, Ohio - $500,000</li>
</ul>
<ul>
<li><strong>WERX Foundation</strong><strong>,</strong> McKinney, Texas - $345,895</li>
</ul>
<p>Earlier this year, EDA released the 2016 Regional Innovation Strategies <a href="http://www.grants.gov/web/grants/view-opportunity.html?oppId=282919">Federal Funding Opportunity (FFO)</a> and began accepting applications. The application period was opened for 60 days. Under the FFO, $13 million was allocated for i6 Challenge grants and $2 million was made available for SFS grants. To learn more about the Regional Innovation Strategies program and the awardee projects, visit <a href="https://www.eda.gov/oie/ris/">eda.gov</a> and the <a href="https://www.eda.gov/oie/files/ris/2016-RIS-FAQ.pdf">FAQs</a>.</p>
Tue, 15 Nov 2016 11:06:57 -0500kcpullen@doc.govhttps://www.commerce.gov/news/press-releases/2016/11/us-department-commerce-invests-15-million-entrepreneurs-across-nation